1. real estate

Trust and Estate Tax Return Guide
For the year ended 5 April 2013
How to fill in the Trust
and Estate Tax Return
This guide has step-by-step instructions to help you fill in
the Trust and Estate Tax Return.
The notes are numbered to match the boxes in the Trust
and Estate Tax Return.
These notes will answer most of your questions. If you need
more help, please phone your HM Revenue & Customs office
on the number shown on the front of your Trust and Estate
Tax Return or see page 2 for more details.
Filing dates for 2012–13
If you file a paper Trust and Estate Tax Return, you must
do so by 31 October 2013.
SA950
If you file the Trust and Estate Tax Return online, you
must do so by 31 January 2014.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 1
What you have received What you should do first
INCOME
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OTHER AND
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2006continued
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the completed
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.
and Estate Tax
that this reache
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s us by 31 Octob
you must make
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paper Trust and
reaches us after
this date, we
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an
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after
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do it for you but
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31 Januar
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and
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These
notes will answer
most
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questions.
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haveofsent
Tax Return
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a paper Trust
. If you file online
and office
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you have
more
help,
please phone ,your
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& Customs
your tax
31 Januar
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. You can use
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the
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number
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Filing dates
for.gov.u
2011–12
your tax
k for information
If we receive your
about filing online
onlineTrust
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you file a paper
and Estate
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you
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31 January 2013
ed an automatic
then you will
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do so by 31 October
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tax the trust or
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estate owes for
payment on accou
2011–12, and
nt for the 2012–
if appropriate
13 tax year,
.
You must pay
what is owed
by this date to
a late payment
avoid interest
penalty.
and possibly
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then please ask
us.
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Issue addre
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: PAGE 1
T
■ TRUST
ESTATE
TAX RETURN
SA950
trust or
tax the
ent of any ary 2013.
your paym
31 Janu
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trust or
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ate the
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page firs
guide you
read this ctions will
Please arrows and instru
Did the trust or estate make any profit or loss from a sole trade?
(Read page 8 of the Trust and Estate Tax Return Guide if you
are the personal representative of a deceased Name at Lloyd's.)
Yes
Trust and estate trade
Q2
Did the trust or estate make any profit or loss or have
any other income from a partnership?
Yes
Trust and estate partnership
Q3
Did the trust or estate receive any UK property income?
Yes
Trust and estate UK property
Q4
Did the trust or estate receive any income from
foreign companies or savings institutions, offshore
funds or trusts abroad, land and property abroad,
or make gains on foreign life insurance policies?
Yes
Is the trust or estate claiming relief for foreign tax
paid on foreign income or gains, or relief from UK
tax under a Double Taxation Agreement?
Yes
Trust and estate foreign
Capital gains
Did the trust or estate dispose of chargeable assets
worth more than £42,400 in total?
Yes
Answer 'Yes' if:
• allowable losses are deducted from the chargeable gains made
by the trust or estate, and the chargeable gains total more than the
annual exempt amount before deduction of losses, or
• no allowable losses are deducted from the chargeable gains
made by the trust or estate and the chargeable gains total
more than the annual exempt amount, or
Yes
• you want to make a claim or election for the year.
Read page 9 of the guide.
Q5
How to fill in the Trust
and Estate Tax Return
For
Reference
Phone
Make sure you have the supplementary pages you need;
tick the box below when you have got them
Q1
Q6
Q7
Q23
Trust and estate capital gains
Is the trust claiming to be not resident in the UK, or dual resident
in the UK and another country for all or part of the year?
Yes
Is the trust claiming total or partial exemption from
tax because of its charitable status?
Yes
Trust and estate charities
Pensions - in the case of an estate, are there any tax charges and/or
taxable lump sums? Read page 9 of the guide, tick ‘Yes’ if applicable. Yes
Estate pension charges etc.
Trust and estate non-residence etc.
Read pages 10 to 12 of the guide. Answer all the questions.
Are you completing this tax return:
Q8
No
8.1
- for a period of administration
8.3
- as the trustee of an unauthorised unit trust
8.5
8.6
- as the trustee of a Heritage Maintenance Fund
8.7
8.8
- as the trustee of an Employer Financed Retirement Benefit Scheme (EFRBS)?
If this happened during the return year please enter the date the EFRBS first became
operative in box 21.11 on page 12. Read note on page 11 of the guide.
Step 3
Yes
8.2
8.4
- as the trustee of an employment related trust
8.9
8.10
If you are a trustee:
- can any settlor (or living settlor's spouse or civil partner) benefit from
the capital or income
8.11
8.12
- are you a participator in an underlying non-resident company
(a company that would be a close company if it were resident in the UK)
8.13
8.14
- is the trust liable to Income Tax at the special trust rates (the trust rate of 50%
or the dividend trust rate of 42.5%) on any part of the income or would it be on
any income above the standard rate band (for example, it is a discretionary trust)
8.15
8.16
- has a valid vulnerable beneficiary election been made?
8.17
8.18
Now fill in any supplementary pages BEFORE answering Questions 9 to 22, as directed.
Please use blue or black ink to fill in the Trust and Estate Tax Return.
Please do not include pence. Round down income and gains. Round up tax credits and tax deductions.
Round to the nearest pound.
■ TRUST AND ESTATE TAX RETURN: PAGE 3
HMRC 12/11
Please turn over
HMRC
SA951
SA900
INCOME
CAPITAL GAINS
for the
year
ended55 April
April 2012
OTHER AND
INFORMATION
for the
year
ended
2006continued
AND
12/11
TRUST
AND
ESTATE TAX RETURN
GUIDE: PAGE
1
HMRC 12/11
Q1
Q2
Q3
Did the trust or estate make any profit or loss from a sole trade?
(Read page 8 of the Trust and Estate Tax Return Guide if you
are the
of a Tax
deceased
Name at
Lloyd's.)
hepersonal
Trustrepresentative
and Estate
Return
asks
for
T
Did the trust or estate make any profit or loss or have
details of income and capital gains.
any other income from a partnership?
Make sure you have the supplementary pages you need;
tick the box below when you have got them
Yes
Trust and estate trade
With itYes
Trust and estate partnership
we
sent
two
guides;
one
to help you fill in
the trust
or estate
receive
any UKthis
property
income?
Didhave
Yes
the Trust and Estate Tax Return, and another to
Q4
Did the trust or estate receive any income from
help
you
calculate
theinstitutions,
trust’s or
estate's
foreign
companies
or savings
offshore
funds or trusts abroad, land and property abroad,
(iforyou
want
to).
make gains on foreign life insurance policies?
Trust and estate UK property
tax bill
Yes
The Self Assessment Orderline
is open daily
Is the trust or estate claiming relief for foreign tax
Allpaid
trustees
representatives
get the
on foreign and
incomepersonal
or gains, or relief
from UK
Yes
tax under a Double Taxation Agreement?
Q5
Q6
first 12 pages of the tax return. There are other
Capital gains
Did the trust or estate dispose
chargeable
'supplementary'
pagesof for
someassets
types of income
worth more than £42,400 in total?
Yes
and
gains.
For
example,
there
are
pages for trade
Answer 'Yes' if:
• allowable losses are deducted from the chargeable gains made
income,
andor for
foreign
income.
From
thethan the
by the trust
estate,
and the chargeable
gains
total more
annual exempt amount before deduction of losses, or
information
we
already
have
we
will
have
included
• no allowable losses are deducted from the chargeable gains
made by the trust or estate and the chargeable gains total
any pages after page 12 of the Trust and Estate
more than the annual exempt amount, or
Yes
• you
want to make
a claim
or election
for the year.
Tax
Return,
if we
think
you need
them.
Read page 9 of the guide.
claiming
to be not resident inwhether
the UK, or dual
Is the
But
ittrust
is your
responsibility,
orresident
not there
in the UK and another country for all or part of the year?
Q7
(except Christmas Day,
Trust and estate foreign
Yes
Boxing Day and
New Year's Day)
on 0845 9000 404.
A textphone service is
available on this number.
You can also order by fax on
0845 9000 604,
Trust and estate capital gains
or online at hmrc.gov.uk/
contactus/staustellform.htm
Trust andor
estate
non-residence
in writing
to POetc.
Box
are
supplementary pages after page 12, to make
Is the trust claiming total or partial exemption from
Yes
Trust and estate charities
Pensions - in the case of an estate, are there any tax charges and/or
taxable lump sums? Read page 9 of the guide, tick ‘Yes’ if applicable. Yes
Estate pension charges etc.
tax because of its charitable status?
sure
that you complete the right ones.
Q23
You must send the ones you need to complete
Q8
If you wish to register for
Self Assessment Online for
Read pages 10 to 12 of the guide. Answer all the questions.
back
tocompleting
us on time
Are you
this taxwith
return:the rest of your Trust and
- for a Tax
periodReturn.
of administration
Estate
Otherwise, you will be liable to
- as the trustee of an unauthorised unit trust
an initial automatic penalty of £100, and
37,
St Austell, PL25 5YN.
No
Trusts,Yes
go to
https://online.hmrc.gov.uk/
8.2
8.1
registration/organisation
8.3
8.4
- as the trustee of an employment related trust
8.5
8.6
- as the trustee of a Heritage Maintenance Fund
8.7
8.8
8.9
8.10
additional penalties for continued delay.
Income for the year ended 5 April 2012
AND
CHARITIES
TRUST
TRUST AND
ESTATE
NON-RESIDENCE
TRUST
AND ESTATE
ESTATE
CHARITIES
- as the trustee of an Employer Financed Retirement Benefit Scheme (EFRBS)?
If this happened during the return year please enter the date the EFRBS first became
operative in box 21.11 on page 12. Read note on page 11 of the guide.
Name of trust
Fill in these
boxes first
Name of charity, if different
Tax reference
Income and gains and Foreign Tax Credit Relief for the year ended 5 April 2012
If you want help, look up the box numbers in the Notes on Trust and Estate Charities.
TRUST AND ESTATE FOREIGN
Name of trust or estate
If you are a trustee:
- can any settlor (or living settlor's spouse or civil partner) benefit from
the capital or income
7.1
Charity repayment reference
Fill in these
Tax reference
Do not delay
8.11
completing
the8.12Trust
- are you a participator in an underlying non-resident company
and Estate Tax Return.
8.13
8.14
(a company that would be a close company if it were resident in the UK)
You do not have to wait
- is the trust liable to Income Tax at the special trust rates (the trust rate of 50%
for the deadline shown
or the dividend trust rate of 42.5%) on any part of the income or would it be on
any income above the standard rate band (for example, it is a discretionary trust)
on8.15the front of 8.16
the tax
- has a valid vulnerable beneficiary election been made?
8.17
8.18
return.
If you tackle
it
Now fill in any supplementary pages BEFORE answering Questions 9 to 22, as directed. earlier you will have more
Please use blue or black ink to fill in the Trust and Estate Tax Return.
time to get help if you
Please do not include pence. Round down income and gains. Round up tax credits and tax deductions.
need
it. Sending it earlier
Round to the nearest pound.
Supplementary
does not mean you have
to pay tax any sooner.
pages are illustrated
■ TRUST AND ESTATE TAX RETURN: PAGE 3
Please turn over
on pages 8 and 9
If you are not sure what
to do, please ask for help
of this guide.
before you start to fill in
the Trust and Estate
Tax Return.
boxes first
Charity Commission Registration Number or
Scottish Charity Number
7.2
If you want
help,
look up
the box numbers
in the Notes on Trust and Estate Foreign.
If the trust is a charity
are you
claiming
exemption
from tax on
YES
all or part of your income and gains?
Foreign savings
Have all income and gains that you are claiming to be exempt
Income for the year ended 5 April 2012
from tax been, or are they to be, applied for charitable purposes? YES
Fill in columns A to E, and tick the box in column E if you want to claim Foreign Tax Credit Relief.
Country
Amount
before tax
Name of trust or estate
box if income
Are you returning information for the yeartick
ended
5 April 2012? YES
is unremittable
䊲
A
Fill in these
TRUST AND ESTATE PARTNERSHIP
Foreign tax
B
C
Special
Withholding Tax
Amount chargeable
Tax reference
D
E
£
£
tick box to claim
Foreign Tax Credit Relief
䊲
Interest and
£
£
£
£
and ends
/
/
pages for/ each /partnership of which the trust or estate was a member, and for each
other savings 7.3 You will need to fill in a copy of these 7.4
business the partnership carried£on. If you want help,
in the Notes£ on Trust and Estate Partnership.
income
£ look up the box numbers
£
If not, what periodboxes
does
this return cover?
first
■
Period begins
Partnership details
Are accounts to be enclosed with the return?
- see Notes,
page TFN4
If 'No', explain why
7.5
Partnership reference number
2.1
YES
£
£
£
£
£
£
Income Tax
Name of trust or estate
Amount already claimed on form R68 - see Notes on page TCHN1 7.6 £
in these being a partner £
●
DateFillstarted
boxes first
Total repayment/payment due(if during 2011–12)
7.82.3£
further repayment/payment The
due
and
or
2.2
●
£
/
£
£
£
£
£ stoppedTax
£
reference
Date
being
a partner
(if during 2011–12)
/
£ Boxes 7.7, 7.9,
2.4
£
£
£ are not in use
complete
a 7.10
separate
copy
of these pages:income
£
share ofYou
themust
partnership's
trading
or £professional
/
/
The notes on pages TTN1 and TTN2 tell you when you need
to and
complete
7.11
7.13 more than one set of Trust and Estate Trade pages.
•
•
£
for each trade, and
£
£
£
for each set of accounts relating to the basis period.
Has the amount in box 7.10 been included in any
Business details
£
£
repayment claim on form R68?
NameYES
of trust or estate
Name of business
in these
● Share of the profit orFill
loss
of this year's account for tax purposes
amounts overclaimed
Income for the year ended 5 April 2012
TRUST AND ESTATE TRADE
£
£
Partnership
trade or profession
£
7.122.5
Basis period starts
/ £1.96 are
/ not and
Box numbers 1.9,
1.94 to
usedends
on
pages.
£ 1.82 and
£ these 2.6
1.1
For the year ended 5 April 2012
TRUSTAND
ANDESTATE
ESTATENON-RESIDENCE
NON-RESIDENCE
TRUST
/
£
£
Description of business
total of column above
4.1A
boxes first
£
/
£
total of column above
1.2
£
4.1
Tax reference
2.7 £
£
Non-exempt amounts should be entered in theAddress
appropriate
parts of the tax return.
of business
● Adjustment to arrive at profit or loss for this basis period
2.8 to£ 6.34.
■
Dividends
£
£activities
£ fill in boxes 6.1
The Notes
Trust and
Estate Non-residence
will help you to
Total
exemptontrading
1.3 turnover from
7.14 £ £
-
see Notes,
pages TFN4
●
Overlap profit brought forward
£
and TFN5
Residence status
£ income
£
Investment
2.9
7.15
Accounting
period
relief
used this£year
£
£ Overlap
Income for the year ended 5 April 2012
2.10 £
Read page TTN2 of the Notes before filling in these boxes
TRUST
AND ESTATE
TRADE
TRUST AND
ESTATE
UK PROPERTY
£ land andbox
£ income
£
2.9 minus
box 2.10
UK
buildings
7.16 £ £
Start
End
The trustees
2.11or£personal representatives are, as a whole (please tick appropriate box):
Overlap profit carried forward £
£Gift Aid
£
7.17 £ £
Postcode
1.4
/
/
1.5
/
/
Name
of trust or estate
●
Resident in the UK for Income Tax purposes
6.1
Averaging for farmers and creators
of literary or artistic
works (or foreign£ tax deducted if Foreign
£
£
£
in theseinOther
reference
7.18 £
● not
Tick claimed)
box 1.6 if the Fill
details
boxescharities
1.1 or 1.3 have
●
Tick box 1.11 if the accounts
not cover the
2.12 £Taxdo
Tax Credit Relief
boxesTrust
first and Estate Tax Return
changed since
last
period£from the last accounting date (explain 6.2
●
Not
resident
in the
UK for Income Tax
1.6£purposes
£ the
£Legacies
7.19 £
why in the 'Additional
information'
box,
£
Net profit for 2011–12
enter '0' here)
2.13
● Date(if
of loss,
commencement
boxin1.116
on page
youUK
help, look
up £the box numbers
the Notes
on TT4)
Trust and Estate UK Property.1.11
£ Resident inIfthe
£want
£
● 2009
for Capital
Gains
6.3
Gifts
of
shares or securities
received
if after 5
April
1.7 7.20
/ £ Tax purposes
/
2.14 £which£parts of pages TL1 and TL2 to fill in.
Allowable loss for 2011–12 (if profit, enter '0'Answer
here) this question to help you decide
£
£
£
●
Tick box 1.12 if the accounting date has
● Date of cessation
£
Gifts
of real
property
received
7.20A Gains
●
Not
resident
in the
UK for
Capital
Tax purposeschanged (only if this is a permanent change
SA905
6.4
if before 6 April 2012
1.8
/
/
£
2.15
● Loss offset against other income
£ for 2011–12Is the£ income from furnished
£
£
holiday
and lettings?
you want it to count for tax)
1.12YES
Other sources
7.21 £
Resident
in adetails
country
than the UK (under a Double Taxation Agreement) at the
Tick box 1.10 if you
entered
forother
all relevant
●
Step 3
If not applicable, turn over and fill in page TL2 to give details of the property income
A
AA
SA904
●
1.16
●
6.7
£
1.19 Yes
No
box 2.20 + box 2.21
● 100%, enhanced
and other
capitalor
allowances
●
Were
the trustees
personal
representatives
Income
£ Tax
●
Legal and
professional
costs resident in the UK for3.5
£
(Claims
to, and
balancing
charges
arising
1.20 £ 2.22 £
1.21 Yes
Total taxable profits
from this
business
6.9
purposes in
the year
to 5 on,
AprilBusiness
2011? Premises Renovation
Allowance must also be included in boxes 21.9 and 21.10 on the return.)
●
Cost of services provided, including wages
3.6 £
●
Did the trustees or personal representatives have any overseas income
during
total of
column above
total of column above
the year to●5 April
2012?
Yes 6.11
Other
expenses
Total capital allowances/balancing
charges
1.223.7£ £
1.23 £
SA902
●
Income and Capital
expensesGains Tax purposes
box 3.10 + box 3.11
Yes 6.15
£
/
/
/
/
/
/
£
£
£
£
continued over
●
Put ‘X’ in the box if this business is in the EEA read the note on page TLN4
●
If you want to make a period of grace election, put ‘X’ in the box
£
see Notes, page TLN3
3.17
£
G
3.18
3.19
Please turn over
H
£
£
£
Copy to box 5.1
Enter chargeable
gains after reliefs,
but before losses
in lines 1 to 6.
Enter losses arising
in lines 7 to 8.
£
£
£
£
Copy to box 5.2
For the year ended 5 April 2012
Total gains
£
Please turn over
£
Total losses £
TRUST AND ESTATE TAX RETURN ■ UK PROPERTY: PAGE TL1
Tax reference
Total loss to carry forward
Enter details of any elections made,
reliefs claimed or due and
state amounts (£)
SA903
/
£
boxes 3.9 + 3.12 minus
box 3.13
3.16
TRUST AND ESTATE TAX RETURN ■ NON-RESIDENCE: PAGE TNR 1
TRUST
ANDCAPITAL
ESTATE GAINS
CAPITAL GAINS
TRUST AND
ESTATE
/
boxes 3.9 + 3.12 minus
(boxes 3.13 + 3.14)
3.15
E
/
No 6.20
D
/
SA906
C
/
£
●
HMRC 12/11
No 6.16
3.12 £
Boxes 6.17 and
used
Disposal
proceeds
/
£
/
£
£
/
£
£
£
/
Total
/
/
/
/
/
Total
/
/
3.14
No 6.14
6.18 box
are1.25
not
box 1.24 minus
/
Loss brought forward used against
this year’s profits
Loss for the year
/
/
/
TRUST AND ESTATE TAX RETURN ■ TRADE: PAGE TT1
/
SA901
1.25
£
/
/
/
/
/
●
HMRC 12/11
SA950
Yes 6.13
1.24
Net profit (put ●figure
iforabox
loss)3.13Arepresentatives
1.26 £
Did in
thebrackets
trustees
personal
carry on
a trade in the UK through a
●
Tick
if box 3.13 includes
enhanced
permanent establishment
that made
disposals forenvironmentally
capital gains in the year to 5 April 2012?
Yes 6.19
capital allowances
for designated
You must now fill in page TT3
3.13A
beneficial plant and machinery
Profit for the year after losses
HMRC 12/12
box 3.1 minus box 3.8
●
Did the trustees or personal representatives change during the year to 5 April 2012?
●
Private
use and goods etc. taken for personal use 3.10 £
Turnover including other business
receipts
● charges
Were the
trustees
or personal representatives resident in the UK for Capital Gains Tax
and balancing
from
box 1.23
purposes in● theBalancing
year to 5charges
April 2011?
3.11 £
Expenses allowable for tax including capital allowances from box 1.22
●
Capital allowances
3.13 £
HMRC 12/11
total of boxes 3.2 to 3.7
B
●
6.8
No 6.10
representatives claim to be non-resident in the UK3.9
for£
If the annual turnover was below £30,000, fill in boxes 1.24 to 1.26 instead of page TT2. Read page TTN3 of the Notes
●
£
No 6.12
3.8 £
1.22A
TRUST
ESTATE Tadjustments
AXmore,
RETURN
■ PARTNERSHIP
: PAGE to
TP11.26. Instead, fill
Please
turn
over
If the annual turnover
wasAND
£30,000
ignore
boxes 1.24
in page
TT2
■ Taxor
HMRC 12/11
TRUST AND ESTATE TAX RETURN ■ CAPITAL GAINS: PAGE TC1
HMRC 12/11
Tick box 1.22A if box 1.22 includes enhanced capital allowances for
designated environmentally beneficial plant and machinery
Information
the trustees
orifpersonal
Netrequired
profit (putiffigures
in brackets
a loss)
3.1
the UK for
1.17
●
Repairs, maintenance and renewals
3.3 £
Add amounts ●notAgricultural
included inorthe
partnership
accounts
which (a
areseparate
needed calculation
to calculatemust
the
Industrial
Buildings
Allowance
TRUST
EDid
STATE
TAX
Rexpenditure)
ETURN ■ FOREIGN: PAGE TF1
£
over
2.21 2012?
taxable profit
be made
forAND
each
block
of
●
the
trustees
or personal representatives changePlease
during turn
the year
to£ 5 April
1.18
●
Finance charges, including interest
3.4 £
Name of trust or estate
6.6
allowances
Balancing charges
£
Capital from
allowances
20%
on equipment
4.2Acars
4.2 £ Capital 2.19
Losses brought● forward
earlier at
years
used
this year including
£ with lower
■ Expenses (furnished holiday lettings only)
CO2 emissions
1.14 £
1.15 £
boxclaim
2.13 minus
Information
the page
trustees
tobox
be2.19
non-resident in
Amount included in box 4.2 that does not qualify
for UK tax required
credit - see if
Notes,
TFN5or personal representatives
4.2B £
● Capital allowances at 10% on equipment including cars with higher
● purposes
Rent, rates, insurance, ground rents, etc.
Income
3.2 £2.20 £
Taxable profit after losses brought
forwardTax
CO2 emissions
£
£
If you want help, look up the box numbers in the Notes on Trust and Estate Capital Gains.
Brief description of assets
Enter full description of assets on page TC5 and onwards
Tick
Enter the
Enter the
Type of
box if
later of
date
disposal
estimate date of
of disposal
Enter
acquisition
Q, U, L or or
O, see* on valuation and 31
March 1982
Page TC2 used
3
4
1
2
Gains
6
5
Losses
of death
£ the UK at the
£
£
Filldate
in £one
page for UK businesses
and a separate
page for EEA businesses
allowances
and balancing charges
2.18 £
Losses brought Capital
forward from
earlier years
●
Income from furnished
holiday
lettings
total
of column
above
total of column above
●
HMRC 12/11
If 'Yes', fill in boxes 3.1 to 3.19
before completing page TL2
boxes first
●
●
£ reference to earlier £years
£
£
£Tick box
Loss - relief to beaccounting
calculated by
2.16●over
same
as being
resident
in the UKcontinued
periods
on time
last year's
Trust
and Estate
1.13 if this is the second or further
6.5
Tax Return and
change
£ boxes 1.14 to 1.73
£ and 1.99 to
£
£ (explain in box 1.116 on page TT4 why
holiday
lettings
in the
UKhave
or not
European
Economic
Area
(EEA)1.13
£you
Loss to carry forward
an
allowable
lossFurnished
in whose
any other
way)
1.115(that
will is,
be●
blank
2.17
used
the same
date as last
year)
1.10
Tick box 6.6
ifnot
theclaimed
deceased
estate
is being
administered
was
domiciled
outside
8
●
7
●
Fill in these
●
HMRC 12/11
HMRC 12/11
SA907
●
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 2
If you decide to file your Trust and
Estate Tax Return online, the first
thing you need to do is register
with our online service and then
purchase third-party commercial
software. The online service is
secure and accurate, plus you will
receive an immediate
acknowledgement of receipt.
In addition:
• you will have until
31 January to file the tax
return online, and
• if we owe the trust or estate
money then a faster
repayment should be made
than if you fill in a paper
tax return.
If you decide to file your return
on paper, you will need to fill in
page 3 of the Trust and Estate Tax
Return to see which pages you
need to fill in. Pages 8 and 9 of
this guide will help. Next, if you
need any of the supplementary
pages or helpsheets mentioned in
this guide go to hmrc.gov.uk/
selfassessmentforms or phone
the Self Assessment Orderline.
If you ask us to calculate the
trust's or estate's tax, or if you
complete a paper Trust and Estate
Tax Return, you must make sure it
reaches us by 31 October 2013.
If the paper tax return reaches us
after this date, you will be
charged an automatic penalty of
£100. If we receive the Trust
and Estate Tax Return after
31 October 2013 and you have
not worked out your tax, we will
do it for you but we cannot
guarantee to tell you what to pay
by 31 January 2014. So if you do
not know what to pay, make an
estimate and pay that. If you do
not pay enough, you will have to
pay interest and possibly a late
payment penalty.
If you miss the 31 October 2013
deadline for the paper tax return,
you can still file online by
31 January 2014 and no penalty
will be charged, provided you
didn’t file your paper tax return
with us first. If you file a paper tax
return after 31 October 2013, or
an online tax return after
31 January 2014, then you will be
liable to an automatic penalty of
£100 and additional penalties if
the delay extends beyond three
months. Make sure that payment
of any tax reaches us by
31 January 2014. Otherwise, you
will have to pay interest and a late
payment penalty.
What next Company X
Dividend
......................
.....
......................
BUILDING
.....
SOCIETY
Statement
......................
.....
......................
.....
......................
.....
......................
.....
......................
.....
......................
.....
What we do Gather together information
about the financial
circumstances of the trust or
estate for 2012–13, such as
dividend vouchers and other
financial records. Do not send
these with the Trust and Estate
Tax Return; keep them safe.
much we owe it. If we see
If you are a trustee you need
to decide:
example, in the
When we get the
completed Trust and Estate
Tax Return we will process
it using your figures, to
work out how much the
trust or estate owes, or how
KEY DATES AND
SUMMARY
2013
You must, by law, have
kept all records.
Failure to do so could give
rise to penalties.
April 2013
Personal representatives should
refer to the section 'Basis of
taxation for personal
representatives' on page 10 of
this guide.
the return we shall only be
You receive the Trust and
Estate Tax Return:
• check to see you have
the right pages
• find the trust's or
estate's records
• fill in the Trust and
Estate Tax Return.
Go to
hmrc.gov.uk/sa/fileonline.htm for
information about filing
online. When you
file online:
• you have a later
deadline to complete
the tax return, and
• you will receive an
immediate
acknowledgement of
receipt.
When you are ready to fill in
looking at the tax return
31 October 2013
HM Revenue & Customs
the Trust and Estate Tax Return,
and documents we have
office is closed, phone the
pages 4 and 5 of this guide tell
asked for.
•
•
any obvious mistakes – for
arithmetic – we may put
if you are resident in the
UK, and
at what rate you are
taxable.
them right and tell you
what we have done. If we
are not sure about a figure
you have entered on your
To do this you must work
through the guidance for
Question 8 on pages 10 to 12
of this guide.
When your
Self Assessment Helpline on
0845 9000 444 for general
advice (textphone is
available). It is open every
day (except Christmas Day,
Boxing Day and
New Year's Day).
Yr laith Gymraeg/Welsh
Language
tax return, we may want to
contact you to make sure
we have understood what
you meant. It would be
helpful if you enter a
daytime phone number in
box 19.1. When we process
you what to do, and the rest of
We will send you our
the guide will help you to fill in
calculation of the trust or
the boxes. If you need more
estate tax if you have asked
help ask us or your tax adviser.
us to do it. If you have
If you have a disability that
calculated the trust's or
makes filling in the tax return
estate's tax, we will let you
know if it is wrong.
difficult we will be able to help
you complete the form. If this
Self Assessment Statement
Statement Number 009
Sheet 1 of 1
Tax reference 39654 16947
Ffoniwch 0845 302 1489 i
dderbyn fersiynau Cymraeg
o ffurflenni a chanllawiau.
applies, please contact us.
Statement Date 17 June 2012
Mr S Jones
58 Brook Road
Formby
Liverpool
L37 7TY
If after sending us the Trust
Date
05 MAY 12
5 MAY 12
17 JUN 12
31 JUL 12
Description
Tax Due
Balance b/fwd from previous statement
34073.34
Payment – thank you
Interest charged
2nd Payment on account due for year 09/10
169.91
3762.26
Amount to pay
the accuracy of the Trust and
Estate Tax Return.
If we cannot agree with the
information you provide, or
we differ on a point of law,
you have right of access to an
independent tax tribunal.
Factsheet HMRC1:
or any details have changed,
then let us know at once.
You will only be penalised if the
tax return is incorrect because
you failed to take reasonable
care or if there is unreasonable
Balance
26243.25
3762.26
30005.51
䊲 If you need to use the payslip, please detach here 䊲
Alliance & Leicester
COMMERCIAL BANK
Bootle Merseyside GIR 0AA
24
Payslip
Trans
cash
Reference
Credit account number
3965416947K
999 9999
158
bank giro credit
Amount due
(no fee payable at PO counter)
£
30005.51
For official use
CHEQUE ACCEPTABLE
MR S JONES
Date
Signature
For official use
CASH
NATWEST BANK PLC
HEAD OFFICE COLLECTION A/C
CHEQUE
HM REVENUE & CUSTOMS
HMRC 04/09
99-99-99
57-80-49
Please do not fold this payslip or write or mark below this line
3965416947K &7241578049 030005002 74
estate's account with us
34073.34
26073.34
26243.25
30005.51
30005.51
Amount to pay:
SA300 Shipley
amounts as soon as you can.
8000.00
Interest is running on the balance due at the statement date, so please pay it now. A further
amount, as shown, is becoming due shortly. You will be charged interest if you pay late.
You must provide final figures
to replace any provisional
Credits
Amount overdue
Amount due by 31 Jul 12
Total amount payable
that you have made a mistake,
You are responsible for
statement of the trust's or
Issued by:
Area Director
Anytown Tax Office
12 High Street
Anytown
AN1 3WE
Telephone 01234 567890 for general enquiries
Telephone 01234 987650 for all payment queries
and Estate Tax Return you find
We will send to you a
£
X
but if you miss the
31 October 2013 deadline
it may not include the
31 January 2014
liability for 2012–13.
Whichever method you
use to file your tax return,
this date is important if
you want to avoid
automatic penalties and
interest. You must:
• make sure we have
received the completed
online tax return
• pay the balance of any
tax the trust or estate
owes for 2012–13
• pay the first payment
on account for the
2013–14 tax year,
if appropriate.
You must send us the
Trust and Estate Tax
Return and pay what is
owed by this date to
avoid automatic
penalties and interest.
This will explain how to pay
any tax due – see the notes
To find out what you can expect
on page 29 of this guide.
from us and what we expect
Once the Trust and Estate
from you go to
Tax Return has been
hmrc.gov.uk/charter
processed it may be
and have a look at
checked. We have
HM Revenue & Customs
delay in providing corrected
Your Charter.
decisions – what to do if you
figures once they are known
Page 31 explains
the tax return to do this.
to you. The maximum penalties
how to complain
We may make some
disagree, available from
hmrc.gov.uk/factsheets/
hmrc1.pdf or your
HM Revenue & Customs
office, tells you about
this process.
can range from 30% to 100%
of the difference between
the correct tax due and
the amount that would have
been due on the basis of the
figures you returned. In some
if you are dissatisfied
with the way we handle the
trust's or estate's tax affairs.
Read page 30 of this guide if
the Trust and Estate
Tax Return was delivered
to you after 31 July 2013.
SA950
circumstances you could
HMRC 12/12
also be prosecuted for
deliberate errors.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 3
You must get your tax
return to us by this date
if you want us to:
• calculate the trust's or
estate's tax
• tell you what to pay by
31 January 2014.
If we receive a paper
tax return after
31 October 2013, you will
be charged an automatic
penalty of £100 even if
there is no tax to pay or
any tax owed has been
paid on time. You can
avoid this penalty if you
file online after this date,
even if we have issued a
paper tax return.
12 months after we receive
enquiries about the figures
and ask you to send us the
records from which you
took them. We may also
check the figures against
details received from other
sources, such as banks.
Filling in the Trust and Estate Tax Return
ding UK Internet accounts)
boxes.
Taxable amount
Questions Q1 to Q7 and Q23 How to fill in the boxes 9.1 £
Gross
tax
Answer
allamount
thebefore
applicable
questions and fill in the
off
Read the first part of page 2 of the
Step 1
Trust and Estate Tax Return to find
9.4 £
appropriate
pages and boxes.
•
out if you can ignore some of the
Write clearly using blue or black ink and only in
Questions (there is a flow chart on
the spaces provided.
off
pages 6 and 7 of this guide that will
Gross amount before tax
•
Use
only when you are asked
£
9.7 numbers
help you decide).
for amounts.
Although there is no need for bare
Taxable amount
h Bonds
9.8 £
trustees to make a tax return, you do
3,500
have the right to complete the tax
return and account for any basic or
off
•
lower rate tax due on income
Please
do not
include
pence – round down
Gross amount
before
tax
received gross provided this is
£
9.11
income
and gains, to the nearest pound, and
off
round up tax credits and tax deductions – for
acceptable to all beneficiaries.
example, if National Savings & Investments
9.14 £
However, bare trustees cannot return
Gross amount before tax
– continued
How to fill in pages 3 to 12 of the Trust and Estate Tax Returnany
capital gains or gains on life
interest is £3,500.87, enter £3,500 in box 9.8.
Round
all the
not just totals.
Other taxed
UK boxes,
interest distributions
For example, if you need to fill in boxes 9.12
boxes 9.5 to 9.7
The information you need to complete these
to will
9.14,
roundondown
boxes
9.12taxand
9.14,
and
boxes
be shown
the trust
or estate's
voucher.
The
voucher
willup
show
the9.13.
total interest
before
round
box
(This distribution
may mean
thatthe tax is
taken off (gross interest), the tax taken off and the amount of the
interest
paid
after
tax has equal
been taken
(net plus
interest).
boxdistribution
9.14 does
not
exactly
boxoff9.12
It may have accumulation units or shares, that is, the interest
box 9.13.)
distribution
is automatically reinvested in the unit trust or
open-ended investment company. If so, you must still show the
• totalPlease
not include
such
as off
'per
interestdo
distribution
beforeentries
tax, the tax
taken
and the
amount of the interest distribution after tax has been taken off.
attached', 'per enclosed accounts' or 'to follow'.
If you do not have a tax voucher (which may have been provided to
in electronic
format),
ask the
unitTrust
trust or
open-ended
• youDo
not delay
sending
the
and
Estate Tax
investment company manager for one.
Return
just because
you distribution
do not have
all the
If you
have received
an interest
without
tax being
deducted, you should include the total interest distribution in
information you need – see the notes for
box 9.7 and enter '0' in box 9.6.
21.5here
onany
page
26 of
thisonguide.
Do box
not enter
amount
shown
the tax voucher as
'equalisation'. This amount, if shown, is a repayment of capital paid
Ifand
youis not
need
help,
the Question
or box
subject
to look
tax. Inup
calculating
capital gains,
the amount of
equalisation should be deducted from the cost of the units or shares
number
in
the
notes.
The
first
part
of
each
number
purchased during the year.
Do notwhich
includeQuestion
dividend distributions
from
UKexample,
authorised unit
shows
it relates to,
for
trusts, OEICs or investment trusts in boxes 9.5 to 9.7. They go in
box
9.8
is the
eighth numbered box of Question 9.
boxes
9.18
to 9.20.
National Savings & Investments
box 9.8
Enter in box 9.8 the total amount from the following:
Direct Saver
Easy Access Savings Account (EASA)
Investment account
Income bonds
Capital bonds (enter the interest added in the year to the capital
bonds as shown on your statement)
• Pensioners' Guaranteed Income Bonds.
You may
findSavings
that in
some parts
the Trust
National
& Investments
FirstofOption
Bonds,and
Guaranteed Income Bonds and Guaranteed Growth Bonds
Estate(previously
Tax Return
are
asked
toBonds)
put a loss in
calledyou
Fixed
Rate
Savings
•
•
•
•
•
brackets. When you are asked to add a number to a
boxes 9.9 to 9.11
This one
interest
is received
after tax
has been
loss,
you should deduct
from
the other
(for
taken off. Enter in boxes 9.9 to 9.11:
example,
+ (40)
= 20).
• the total60
interest
received
after tax taken off
• the total tax taken off
• the total interest received before tax was taken off.
insurance
policies,
life annuities
or
• interest from securities
where Accrued
Income
Scheme losses
are available (see the
note on
page 20). policies; these
capital
redemption
Depending on the nature of the interest, it may be paid without tax
continue
to be
theoffbeneficiaries'
taken off (gross), or after
tax has been
taken
(net).
If no tax has been taken
off, enter theonly.
interest received in
responsibility
box 9.12 and box 9.14, leave box 9.13 blank.
If tax has been takenBeneficiaries
off, fill in all thewill
boxes.
Make
sureto
theenter
figure
also
need
in box 9.14 includes the tax taken off.
all trust income received (either net
Purchased life annuities
or gross) on any tax return, or claim
Income from a purchased life annuity should be included in
form, will
they
need
to ofcomplete.
boxes 9.12 to 9.14. Income
only
be part
the payment
received – check the payment certificate. Do not put the rest of the
payment on the tax return.
will trustee
usually beof
received
from a
If youIncome
are the
a charitable
purchased life annuity after the payer has taken tax off.
trust
read
part 4 of
Stepnor
1 on
page
A purchased life annuity
is not
a retirement
annuity,
the result
of contributions made2to
a
personal
pension
plan.
All
other
of the Trust and Estate Tax Return
annuities, including annuities under personal pension schemes,
retirement annuity contracts
schemes,
to seeorif retirement
you can annuity
ignoretrust
some
of the
should be entered in boxes 9.32 to 9.34.
Questions in the return.
Answer Questions Q1 to Q7, Q23
Dividends including stock dividends, dividend distributions and
and
Stepbe1 repaid:
has
qualifying distributions
carrythen
a tax Q8
credit(unless
which cannot
Step 2
• if the trust pays tax only at the basic rate, the tax credit at the
instructed
you
otherwise)
on
dividend rate meets the tax bill on the distribution
• if the trust pays taxpage
at the 3special
trustTrust
rates, the
of the Tax
of the
andtotal
Estate
dividend and the tax credit is taxed at the dividend trust
rate (42.5%) and the
tax credit
is treated
tax already
set
Return.
If you
tickasthe
'Yes' box,
against this.
go to hmrc.gov.uk/
As personal representatives only pay tax at the basic rate, the
tax credit meets the liability
and there is no more taxfor
to pay.
selfassessmentforms
any
supplementary
pagesfrom
you
Dividends and other
qualifying distributions
UK companies
Dividends received by
trustees of unauthorised
unit trusts
Orderline
for copies.
Since 6 April 1999 the trustees of an unauthorised unit trust have
not been entitled to a tax credit where they receive a dividend or
other qualifying distribution from a UK company (including a
dividend distribution received from a UK authorised unit trust or
open-ended investment company). This means that the measure of
the trustees' income for Income Tax purposes will be the amount
of dividend received. Trustees should not make any entries in
boxes 9.15 to 9.23 but the notes to those boxes will help in
determining what is to go instead in boxes 9.24 and 9.25.
year
ended55 April
April 2012
INCOME
CAPITAL GAINS
for the
OTHER AND
INFORMATION
for the
year
ended
2006continued
Make sure you have the supplementary pages you need;
tick the box below when you have got them
Q1
Did the trust or estate make any profit or loss from a sole trade?
(Read page 8 of the Trust and Estate Tax Return Guide if you
are the personal representative of a deceased Name at Lloyd's.)
Yes
Q2
Did the trust or estate make any profit or loss or have
any other income from a partnership?
Yes
Trust and estate partnership
Q3
Did the trust or estate receive any UK property income?
Yes
Trust and estate UK property
Q4
Did the trust or estate receive any income from
foreign companies or savings institutions, offshore
funds or trusts abroad, land and property abroad,
or make gains on foreign life insurance policies?
Yes
Is the trust or estate claiming relief for foreign tax
paid on foreign income or gains, or relief from UK
tax under a Double Taxation Agreement?
Yes
Trust and estate trade
Trust and estate foreign
Q5
Capital gains
Did the trust or estate dispose of chargeable assets
worth more than £42,400 in total?
Yes
Answer 'Yes' if:
• allowable losses are deducted from the chargeable gains made
by the trust or estate, and the chargeable gains total more than the
annual exempt amount before deduction of losses, or
• no allowable losses are deducted from the chargeable gains
made by the trust or estate and the chargeable gains total
more than the annual exempt amount, or
Yes
• you want to make a claim or election for the year.
Read page 9 of the guide.
Q6
Is the trust claiming to be not resident in the UK, or dual resident
in the UK and another country for all or part of the year?
Yes
Q7
Is the trust claiming total or partial exemption from
tax because of its charitable status?
Yes
Trust and estate charities
Pensions - in the case of an estate, are there any tax charges and/or
taxable lump sums? Read page 9 of the guide, tick ‘Yes’ if applicable. Yes
Estate pension charges etc.
Q23
Q8
Trust and estate capital gains
Trust and estate non-residence etc.
Read pages 10 to 12 of the guide. Answer all the questions.
Are you completing this tax return:
boxes 9.15 to 9.17
SA950
Yes
8.2
8.4
8.5
8.6
- as the trustee of a Heritage Maintenance Fund
8.7
8.8
- as the trustee of an Employer Financed Retirement Benefit Scheme (EFRBS)?
If this happened during the return year please enter the date the EFRBS first became
operative in box 21.11 on page 12. Read note on page 11 of the guide.
If you are a trustee:
- can any settlor (or living settlor's spouse or civil partner) benefit from
the capital or income
Interest not included in boxes 9.1 to 9.11
8.3
- as the trustee of an employment related trust
Dividends
boxes 9.12 to 9.14
Include totals of the following items of
income in boxes 9.12 to 9.14. Keep details in case we ask for more
information later.
No
8.1
- for a period of administration
- as the trustee of an unauthorised unit trust
Other income from UK savings and investments
need, or
phone the Self Assessment
8.9
8.11
8.10
8.12
- are you a participator in an underlying non-resident company
(a company that would be a close company if it were resident in the UK)
8.13
8.14
- is the trust liable to Income Tax at the special trust rates (the trust rate of 50%
or the dividend trust rate of 42.5%) on any part of the income or would it be on
any income above the standard rate band (for example, it is a discretionary trust)
8.15
8.16
- has a valid vulnerable beneficiary election been made?
8.17
Do not include distributions from the tax exempt profits of a
UK Real Estate Investment Trust ('UK REIT') or a Property
Authorised Investment Fund ('PAIF') (such distributions are
Page 3 of theor
Trust
and
known as Property Income Distributions,
PIDs,
and are
Return
normally paid under deduction of Estate
IncomeTax
Tax).
Use boxes 9.32
to 9.34 instead.
Step 3
8.18
Now fill in any supplementary pages BEFORE answering Questions 9 to 22, as directed.
Please use blue or black ink to fill in the Trust and Estate Tax Return.
Please do not include pence. Round down income and gains. Round up tax credits and tax deductions.
Round to the nearest pound.
HMRC 12/11
■ TRUST AND ESTATE TAX RETURN: PAGE 3
Please turn over
Include in boxes 9.12 to 9.14 any interest received which is not
included in boxes 9.1 to 9.11. For example:
The dividend voucher shows the amount of the dividend and the
• from certificates of tax deposit when the certificate is applied in
tax credit. Add these together to get 'dividend/distribution plus
payment of a tax liability
credit' in box 9.17.
HMRC
12/12
■ TRUST AND ESTATE
TAX RETURN GUIDE: PAGE 4
• on government stocks (gilts), including those bought through
If the trustees of a will trust have received any dividend income in
the National Savings & Investments Stock Register
the year from the personal representatives distributing the income
• on other loan stocks
that arose during the administration period, they should enter the
More about late
filing penalties
If we receive a paper or
online tax return after
the filing date, you will
be charged an
automatic penalty of
£100 even if there is no
tax to pay or any tax
owed has been paid
on time.
If you still do not send
us the completed Trust
and Estate Tax Return,
you will also be charged
the following penalties:
• Over three months
late – a penalty of
£10 for each
additional day that it
is late for a maximum
of 90 days (£900)
• Over six months late
– an additional £300
or 5% of the tax due
if this is higher
• Over 12 months late
– a further £300 or a
further 5% of the tax
due if this is higher,
or up to 100% of the
tax due if information
is being deliberately
withheld to prevent
us from assessing the
liability. This could be
up to 200% if the
income or gains not
being declared arise
outside the UK.
Supplementary pages Step 3
Pages 4 to 12
Fill in the
Then fill in Questions Q9 to Q22, as directed by
supplementary pages
the tax return.
WHAT IS IN THE
REST OF YOUR
TAX RETURN
GUIDE
Income for the year ended 5 April 2012
Pages 8 and 9 will
help you to fill in
page 3 of the
Trust and Estate
Tax Return.
TRUST AND ESTATE PARTNERSHIP
that apply to you.
Name of trust or estate
Tax reference
Fill in these
boxes first
You will need to fill in a copy of these pages for each partnership of which the trust or estate was a member, and for each
business the partnership carried on. If you want help, look up the box numbers in the Notes on Trust and Estate Partnership.
Partnership details
Partnership reference number
2.2
●
Date started being a partner
(if during 2011–12)
2.3
/
/
/
/
Date stopped being a partner
(if during 2011–12)
The share of the partnership's trading or professional income
2.5
Basis period starts
●
Example of filling in page 4 of the
Trust and Estate Tax Return
INCOME for the year ended 5 April 2013
If you use photocopies,
Partnership trade or profession
2.1
●
and ends
2.6
/
Share of the profit or loss of this year's account for tax purposes
●
Adjustment to arrive at profit or loss for this basis period
●
Overlap profit brought forward
2.9
£
Overlap relief used this year
2.4
/
/
/
2.7
£
2.8
£
2.10
£
Q9
box 2.9 minus box 2.10
●
●
2.11
Overlap profit carried forward
£
Averaging for farmers and creators of literary or artistic works (or foreign tax deducted if Foreign
Tax Credit Relief not claimed)
Net profit for 2011–12 (if loss, enter '0' here)
Allowable loss for 2011–12 (if profit, enter '0' here)
2.14
£
●
Loss offset against other income for 2011–12
2.15
£
Loss - relief to be calculated by reference to earlier years
2.16
£
●
●
Loss to carry forward (that is, an allowable loss not claimed in any other way) 2.17 £
●
Losses brought forward from earlier years
●
Losses brought forward from earlier years used this year
2.18
2.12
£
2.13
£
2.19
£
2.20
£
2.21
£
⻫
If yes, fill in boxes 9.1 to
9.40 as appropriate.
Pages 10 to 27 give
you box-by-box
guidance to help you
fill in pages 3 to 12
of the tax return.
If you wish, you may in the following circumstances leave blank some of boxes 9.1 to 9.40:
reference
on each copy.
a) if you are the trustee of an interest in possession trust (one which is exclusively an interest in possession trust),
box 2.13 minus box 2.19
Add amounts not included in the partnership accounts which are needed to calculate the
taxable profit
YES
or estate's name and tax
£
Taxable profit after losses brought forward
●
Did the trust or estate receive any other income not already
please
enter
the
trust's
included
on the
supplementary
pages?
you may exclude income which has had tax deducted before you received it (or is UK dividends with tax credit) unless
box 2.20 + box 2.21
SA902
Total taxable profits from this business
TRUST AND ESTATE TAX RETURN ■ PARTNERSHIP: PAGE TP1
HMRC 12/11
2.22
£
(i) that income has not been mandated to the beneficiary and there are accrued income scheme losses to set against
the interest or you are claiming losses against general income, or
(ii) its exclusion would make you liable to make a payment on account which would not be due if you included it –
see page 15 of the Trust and Estate Tax Calculation Guide concerning payments on account before following
this guidance.
Please turn over
Example of filling in boxes on page TL2
b) if you are the personal representative of a deceased person you may exclude income which has had tax deducted
Estate
of the supplementary Trust and
before you received it (or is UK dividends with tax credit) unless there are accrued income scheme losses to set against
the interest. If the reliefs claimed at Question 10A on page 6 exceed untaxed income, you will need to include estate
UK Property pages
You can use page 28
to add up any figures
to be included in the
tax return.
income that has had tax deducted to make sure a repayment can be calculated.
"
Have you received any taxed income (or UK dividends with tax credit) which you are not including in this
Trust and Estate Tax Return because (a) or (b) above apply?
3.20
£
3.22
£
3.22A
£
nd property
24,000
Interest and alternative finance receipts
Tax deducted
3.21
£
172
●
YES
Interest and alternative finance receipts from UK banks and building societies (including UK Internet accounts)
– if you have more than one bank or building society etc. account enter totals in the boxes.
Page 29 includes
information about
paying the trust's or
estate's tax.
boxes 3.20 + 3.22 + 3.22A
24,000
Taxable amount
3.23 £
– where no tax has been taken off
9.1
£
u have already put in boxes 3.2 to 3.7 on page TL1)
etc.
wages
3.24
£
3.25
£
3.26
£
3.27
£
3.28
£
3.29
£
– where tax has been taken off – there
is a Working Sheet in the guide which
will help you to fill in boxes 9.2 to 9.4.
5,600
1800
●
Other taxed UK interest distributions
– read the note for this section in the
guide (do not include Property
Income Distributions)
Amount after tax taken off
9.2
3.30
loss)
9.5
£
●
arising under
nce which
0
3.33 £
a claim for
r shops
£
£
9.6
16,600
£
£
9.7
Other information
●
Other income from UK savings and
investments (except dividends)
9.12
£
●
want to
calculate9.13
the
tick the 'Yes' box and fill
21.4
9.14
boxes
in
trust's
/
21.3
Date
/
£
£
If this Trust and Estate Tax Return contains
any figures that are provisional because
you do not
yet have final figures, please tick box 21.5. Read page 26 of the guide.
9.1 to 9.40,
/
21.5
●
If any 2011–12 tax was refunded directly by the HM Revenue & Customs office, or (personal
as appropriate.
or estate's
tax,
include
representatives
only) by
the Jobcentrethe
Plus (in Northern Ireland, the Social Security Agency),
Amount
please enter the amount in box 21.6. Do not include any refunds of excessive payments on
any Gift Aidin
repayments
account or
relevant
figures
the claimed on form R68 Claim.
●
21.6
£
Disclosure of tax avoidance schemes – if the trust or estate is a party to one or more disclosable tax avoidance
schemes you must complete boxes 21.7 and 21.8. Give details of each scheme (up to three) on a separate line. If the
trust or estate is a party to more than three schemes, details of the additional schemes must be reported on form AAG4.
calculation. The Trust and
tells you what to do.
21.8
21.7
trust's
Box 3.37oris estate's tax,
boxesyou
3.35 + will
3.35C + 3.36
Fill in Question 17 if
not in use
●
you have calculated
Business Premises Renovation Allowance (BPRA) Read
page 27 of the Trust and Estate Tax Return Guide before
you fill in these boxes.
the Declaration and
£
Q22
box 3.39 minus box 3.41
3.42
3.44
£
Finally, sign and date
3.41
3.43
£
tax bill.
Page 4
£
year
Balancing charge
Capital allowance
21.10
21.9
the trust's
or estate's
21.11 Additional information
box 3.38
Estate Tax Calculation Guide
3.39 £
SA900
2013
will help
you work
it out.
3.40
Tax year in which the expected
advantage arises – year ended 5 April
Estate
Tax Calculation Guide
Scheme reference number
If you want to calculate the
boxes 3.31 + 3.34 minus
box 3.38
ar
/
If you are a trustee and the trust was terminated in the year to 5 April 2012 please enter in
has had
tax deducted. If you
the reason for termination.
/
/
Date
21.2
the off
date of termination and,Tax
in the
'Additional
information' box,
box 21.11
below,
Amount afterbox
tax21.4
taken
taken
off
Gross
amount
before tax
boxes 3.31 + 3.34 minus
d the note on page TLN8
21.1
Read page 26received
of the guide. any other income
by the deceased’s
will, please
tick box 21.3.
building
society
interest
which
£
the calculation. The Trust and
box 3.39)
Date
If you are completing this Trust and Estate Tax Return as a personal representative, please enter
in box 21.1 the date of death of the deceased.
£
3.38figure
have to include this
in
39 and put the loss in box 3.40)
£
National Savings & Investments First
●
If the administration period ceased in the year to 5 April 2012, please enter in box 21.2
afterthe
tax
taken
off boxes the
Amount
Taxtotal
taken off
Gross amount
before tax
If the trust
or estate
Enter
in
datethese
of cessation.
Option Bonds, Guaranteed Growth Bonds
box 3.33 Bonds
box 3.32 + Income
ceased£in the year to 5 April 2012 and there
and Guaranteed
9.9 £ ● If the administration period9.10
9.11is a £trust created
claim.
3.36
Notes at the back of
this guide will help
you to complete any
supplementary pages
we have included in
this tax return.
Gross amount before tax
Taxable amount
Q21
3.35B
£
100
£
7,400
3.35A
the
expenses you want
3.35C
Tax taken off
£
Enter in these boxes
enhanced
to
vironmentally
9.4
boxSavings
3.23 minus
3.30
National
&box
Investments
(other than First Option
Bonds,
Guaranteedfor
Growth
Bonds
OTHER
INFORMATION
the year
ended 5 April 2012 continued
and Guaranteed
Income Bonds)
9.8 £
3.31 £
3.34
●
3.35
Gross amount before tax
20
£
Amount after tax taken off
●
ess Premises
also be
9.3
total of boxes 3.24 to 3.29
●
3.32
Tax taken off
80
£
Declaration
send the completed
I have filled in and am sending back to you the following Trust and Estate Tax Return pages:
£
1 to 12 of this form
£
£
⻫
Trust and estate non-residence etc.
tax return back
to us.
Trust and estate UK property
Trust and estate trade
1 TO 12 OF THIS FORM
Trust and estate foreign
Trust and estate partnership
Trust and estate capital gains
Trust and estate charities
Do not includeEstate
thepension charges etc.
Before you send the completed tax return back you must sign the statement below.
trust's or estate's
If you give false information or conceal any part of trust or estate income or chargeable gains, you may be liable
to financial penalties and/or you may be prosecuted.
details of property let jointly
22.1
3.45
Signature
John Green
go back to page 4 of the Trust and Estate Tax Return and finish filling it in.
• Please print your name in box 22.2
SA950
22.2
5012992 12/11
HMRC 12/11
HMRC 12/12
financial records. Keep
The information I have given in this tax return is correct and complete to the best of my knowledge and belief.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 5
them safe.
Date
• Enter the capacity in which you are signing in box 22.3
22.3
■ TRUST AND ESTATE TAX RETURN: PAGE 12
xxxxxxx 12/11
You will not need to complete the full Trust and Estate Tax Return if Step 1 on page 2 of the return applies
to you. This flow chart will help you to decide if it does and which Questions to complete.
Start here
Are you the trustee of an unauthorised unit trust?
YES
Go to Step 2 on page 2
of the tax return
NO
Are you the trustee of a bare trust, that is, one in which the beneficiaries
have an immediate and absolute title to both capital and income?
YES
Go to Step 1(1) then
Question 17 of the
tax return
NO
Are you the personal representative of a deceased person?
YES
Go to 'A' on
the next page (page 7)
NO
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
NO
Are you the trustee of an interest in possession trust?
YES
Do you want to claim any reliefs?
NO
Have you paid any annuity or other annual payment out of
capital in the year?
NO
Have you made any capital payments to or for the benefit of the
relevant children of the settlor during the settlor's lifetime (a relevant
child is a minor who has never been married or in a civil partnership)?
NO
Has any more capital been added to the settlement during the year?
NO
Are there any accrued income profits, accrued income losses, income
from deeply discounted securities, gilt strips, company buy backs,
offshore income gains or gains on life insurance policies, life annuities
or capital redemption policies?
NO
Has the trust ever been non-resident or received any capital from
another trust which is, or at any time has been, non-resident?
NO
Can any settlor (or living settlor’s spouse or civil partner) benefit from
the capital or income?
NO
Are you a participator in an underlying non-resident company (a
company that would be a close company if it were resident in the UK)?
SA950
NO
Go to the top of the next page (page 7)
HMRC 12/12
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 6
Continued from page 6
Did any income arise to the trust during the year?
NO
YES
Did all the income arise in the UK?
NO
Go to Step 2 on page 2
of the tax return
YES
Did all of the income have tax deducted before you
received it?
YES
Have you made
chargeable disposals
during the year?
NO
Have you mandated all of the trust income to
the beneficiaries?
YES
NO
Have you mandated part of the trust income to
the beneficiaries?
NO
Go to Step 2 on page 2
of the tax return
YES
Does the part of the income not mandated to the
beneficiary comprise only of income arising in the UK
which has had tax deducted before you received it?
NO
Go to Step 2 on page 2
of the tax return
NO
YES
Answer Q5 and Q6 at Step 2, Q8 and Q17 to Q22 of
the tax return
A
Did all of the income arise in the UK?
NO
Go to Step 2 on page 2
of the tax return
NO
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
YES
Go to Step 2 on page 2
of the tax return
NO
Go to Step 1(2)
then Question 17 of
the tax return
YES
Did all of the income have tax deducted before
you received it?
YES
Do you want to claim any reliefs?
NO
Have you made any annual payments out of
capital in the year?
NO
Are there any accrued income profits, accrued
income losses, income from deeply discounted
securities, gilt strips, company share buy backs or
offshore income gains or gains on life insurance
policies, life annuities or capital redemption policies
that do not carry a tax credit or that are not treated
as having been taxed? These items are all taxable at
the basic rate except for company share buy backs,
which are taxable at the dividend rate.
NO
Have you made chargeable disposals during the year?
YES
SA950
Answer Q5 and Q6 at Step 2, Q8 and
Q17 to Q22 of the tax return
HMRC 12/12
NO
Answer Q5 and
Q6 at Step 2, Q8
and Q17 to Q22 of
the tax return
Go to
Step 1(3) then
Question 17 of
the tax return
YES
Have you made chargeable disposals during the year?
YES
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 7
What makes up your tax return
Tax return Partnership
Trade
Q1
complete pages 3 to 12,
as appropriate, of the
Trust and Estate
Tax Return if Step 1
does not apply to you.
We have included any
supplementary pages
we think you need after
page 12 of the return.
Notes to help you
complete them are at
the back of this guide.
You must make sure
that you have the right
ones. You can download
Fill in the Trust and
Estate Trade pages if the
trust or estate carried on
a trade, profession, or
vocation.
If it traded with someone
else, in partnership, you
need to fill in the Trust and
Estate Partnership pages
instead. (If this applies,
tick the 'Yes' box in
Question 2.)
Fill in the Trust and
Estate Partnership pages
to give details of the
trust's or estate's share
of income if it carried
on a trade, profession,
vocation or other
business, in partnership.
TRUST AND ESTATE PARTNERSHIP
Name of trust or estate
Tax reference
Fill in these
Income for the year ended 5 April 2012
boxes first
Partnership details
There are separate
pages for the special
circumstances of Lloyd's
underwriters which you
will have to complete if
you are the personal
representative of a
deceased member of
Lloyd's (or Name), if the
member died on or before
31 December 2012.
If you want help, look up the box numbers in the Notes on Trust and Estate UK Property.
2.2
●
Date started being a partner
(if during 2011–12)
2.3
/
/
2.5
/
/
Answer this question to help you decide which parts of pages TL1 and TL2 to fill in.
Date stopped being a partner
(if during 2011–12)
2.4
The share of the partnership's trading or professional income
and ends
/
Share of the profit or loss of this year's account for tax purposes
2.7
£
●
Adjustment to arrive at profit or loss for this basis period
2.8
£
2.10
£
2.12
£
2.13
£
●
Overlap profit brought forward
2.9
●
Overlap profit carried forward
2.11
£
Overlap relief used this year
£
Averaging for farmers and creators of literary or artistic works (or foreign tax deducted if Foreign
Tax Credit Relief not claimed)
Allowable loss for 2011–12 (if profit, enter '0' here)
2.14
£
●
Loss offset against other income for 2011–12
2.15
£
2.16
£
●
Loss - relief to be calculated by reference to earlier years
●
Loss to carry forward (that is, an allowable loss not claimed in any other way) 2.17 £
●
Losses brought forward from earlier years
●
Losses brought forward from earlier years used this year
2.18
2.19
●
●
Self Assessment
●
1.4
Tick box 1.6 if the details in boxes 1.1 or 1.3 have
changed since the last Trust and Estate Tax Return
●
1.6
Date of commencement
if after 5 April 2009
1.7
/
/
Date of cessation
if before 6 April 2012
1.8
/
/
●
Tick box 1.10 if you entered details for all relevant
accounting periods on last year's Trust and Estate
Tax Return and boxes 1.14 to 1.73 and 1.99 to
1.115 will be blank
1.10
●
Capital allowances and balancing charges
Orderline for copies.
●
●
●
●
/
Tick box 1.13 if this is the second or further
change (explain in box 1.116 on page TT4 why
you have not used the same date as last year)
1.13
Capital allowances at 20% on equipment including cars with lower
CO2 emissions
Capital allowances at 10% on equipment including cars with higher
CO2 emissions
Agricultural or Industrial Buildings Allowance (a separate calculation must
be made for each block of expenditure)
100%, enhanced and other capital allowances
(Claims to, and balancing charges arising on, Business Premises Renovation
Allowance must also be included in boxes 21.9 and 21.10 on the return.)
Capital allowances
HMRC 12/11
TRUST AND ESTATE TAX RETURN ■ PARTNERSHIP: PAGE TP1
£
1.15
£
1.16
£
1.17
£
1.18
£
1.19
£
1.20
£
1.21
£
total of column above
●
1.22
Tick box 1.22A if box 1.22 includes enhanced capital allowances for
designated environmentally beneficial plant and machinery
Income and expenses
£
total of column above
1.23
£
1.22A
If the annual turnover was £30,000 or more, ignore boxes 1.24 to 1.26. Instead, fill in page TT2
If the annual turnover was below £30,000, fill in boxes 1.24 to 1.26 instead of page TT2. Read page TTN3 of the Notes
●
of the tax return next
●
Turnover including other business receipts and goods etc. taken for personal use
and balancing charges from box 1.23
Expenses allowable for tax including capital allowances from box 1.22
1.24
£
1.25
£
SA901
box 1.24 minus box 1.25
Net profit (put figure in brackets if a loss)
HMRC 12/11
1.26 £
TRUST AND ESTATE TAX RETURN ■ TRADE: PAGE TT1
You must now fill in page TT3
Questions on page 3
of the tax return to
find out. These notes
will help.
for the year ended
2012
2002
for the year ended 5 5
April
April
Issue address
HM Revenue & Customs
For
Reference
Please read this page first
The green arrows and instructions will guide you
through your tax return
Make sure the tax return, and any documents
we ask for, reach us by:
Whichever method you choose, the tax return
and any documents asked for must reach us by
the relevant deadline or an automatic penalty of
£100 will be charged.
If you file online, you have until 31 January to file
the tax return and you will receive an instant
on-screen acknowledgement telling you that we
have received it. You can still file online even if we
have sent you a paper tax return. To file online,
go to www.hmrc.gov.uk/online
If this return has been issued to you after
31 July 2012, then you must ensure that you
complete and return it by the later of:
SA900
• the relevant dates above, or
• three months after the date of issue.
The Trust and Estate Tax Return may be checked.
There are penalties for supplying false or
incomplete information.
You can choose to calculate the trust or estate's tax. But if
you do not want to, and providing we receive the return
by 31 October 2012, we will work out the tax for you and
let you know if there is tax to pay by 31 January 2013.
However, if you file later than 31 October 2012 or
three months after the date this notice was given, see the
Trust and Estate Tax Calculation Guide (sent with this return
unless we know you have a tax adviser).
The Trust and Estate Tax Return – your
responsibilities
We have sent you pages 1 to 12 of the tax return.
You might need other forms - 'supplementary pages' - if the
trust or estate had particular income or capital gains. Use
page 3 to check.
You are responsible for sending us a complete and correct
return, but we are here to help you get it right.
Three ways we can help you:
•
•
look at the Trust and Estate Tax Return Guide
(sent with this tax return, unless we know you
have a tax adviser). It should answer most of
your questions, or
phone us on the above number, or
go to www.hmrc.gov.uk/sa
■ TRUST AND ESTATE TAX RETURN: PAGE 1
Continued over
SA950
HMRC 12/11
Make sure your payment of any tax the trust or
estate owes reaches us by 31 January 2013.
Otherwise you will have to pay interest, and
possibly a late payment penalty.
Calculating the trust or estate’s tax
•
HMRC 12/12
£
3.4
£
Legal and professional costs
3.5
£
Cost of services provided, including wages
3.6
£
Other expenses
3.7
£
total of boxes 3.2 to 3.7
£
3.8
3.9
Private use
3.10
£
Balancing charges
3.11
£
Capital allowances
3.13
£
£
box 3.10 + box 3.11
3.12
£
Tick box 3.13A if box 3.13 includes enhanced
capital allowances for designated environmentally
3.13A
beneficial plant and machinery
Loss brought forward used against
this year’s profits
3.14
£
boxes 3.9 + 3.12 minus
(boxes 3.13 + 3.14)
Profit for the year after losses
£
Put ‘X’ in the box if this business is in the EEA read the note on page TLN4
Please turn over
Balancing charges
1.14
Finance charges, including interest
3.15
3.16
£
£
see Notes, page TLN3
/
1.11
1.12
Total capital allowances/balancing charges
Go to Step 2 on page 2
/
1.5
Tick box 1.12 if the accounting date has
changed (only if this is a permanent change
and you want it to count for tax)
£
boxes 3.9 + 3.12 minus
box 3.13
End
/
Tick box 1.11 if the accounts do not cover the
period from the last accounting date (explain
why in the 'Additional information' box,
box 1.116 on page TT4)
£
Total loss to carry forward
1.2
Postcode
●
£
3.3
Loss for the year
1.3
or you can phone the
£
2.21
2.22
Total taxable profits from this business
Address of business
Start
2.20
box 2.20 + box 2.21
Description of business
1.1
£
box 2.13 minus box 2.19
Add amounts not included in the partnership accounts which are needed to calculate the
taxable profit
Income for the year ended 5 April 2012
Business details
3.2
Repairs, maintenance and renewals
box 3.1 minus box 3.8
£
Tax reference
Name of business
If 'Yes', fill in boxes 3.1 to 3.19
before completing page TL2
3.1
Rent, rates, insurance, ground rents, etc.
Net profit (put figures in brackets if a loss)
Taxable profit after losses brought forward
●
YES
(furnished holiday lettings only)
box 2.9 minus box 2.10
●
Net profit for 2011–12 (if loss, enter '0' here)
Accounting period
• 31 October 2012 if you want us to calculate
the trust or estate's tax or if you file a paper
tax return, or both, or
• 31 January 2013 if you file the return online.
Is the income from furnished holiday lettings?
Fill in one page for UK businesses and a separate page for EEA businesses
●
Read page TTN2 of the Notes before filling in these boxes
T
/
/
The notes on pages TTN1 and TTN2 tell you when you need to complete more than one set of Trust and Estate Trade pages.
You must complete a separate copy of these pages:
• for each trade, and
• for each set of accounts relating to the basis period.
Box numbers 1.9, 1.82 and 1.94 to 1.96 are not used on these pages.
selfassessmentforms
his notice requires you, by law, to send
a tax return containing details of your income
and capital gains, together with any documents
requested, for the year 6 April 2011 to
5 April 2012. We have sent you this paper form to
fill in, but you can also file the tax return online
using our internet service (you will need to buy
commercial s oftware).
/
If not applicable, turn over and fill in page TL2 to give details of the property income
2.6
TRUST AND ESTATE TRADE
to hmrc.gov.uk/
Phone
Tax reference
boxes first
Partnership trade or profession
2.1
●
Name of trust or estate
Fill in these
Partnership reference number
Name of trust or estate
Trust and Estate
Tax Return
TRUST
AND ESTATE
TRADE
TRUST AND
ESTATE
UK PROPERTY
You will need to fill in a copy of these pages for each partnership of which the trust or estate was a member, and for each
business the partnership carried on. If you want help, look up the box numbers in the Notes on Trust and Estate Partnership.
boxes first
Date
• furnished holiday
lettings.
Income from furnished holiday lettings
Fill in these
Tax reference
• land and property, or
Income for the year ended 5 April 2012
Basis period starts
any that you need, go
and then answer the
Fill in the Trust and
Estate UK Property pages
if the trust or estate
received UK income
from:
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 8
SA903
representative you must
Q3
Q2
SA902
As a trustee or personal
UK Property If you want to make a period of grace election, put ‘X’ in the box
HMRC 12/11
3.17
£
3.18
3.19
Please turn over
CAPITAL
CapitalGAINS
gains Foreign
Non-residence Q5
Q4
Fill in the Trust and
Estate Foreign pages
if the trust or estate
received in 2012–13:
• income from foreign
companies, or savings
institutions, or
• income from offshore
funds or trusts
abroad, or
• income from land and
property abroad, or
• foreign life insurance
policy, life annuity, or
capital redemption
policy gains.
Or if you want to claim
relief for foreign tax on
foreign income or gains.
Income and gains and Foreign Tax Credit Relief for the year ended 5 April 2012
TRUST AND ESTATE FOREIGN
Name of trust or estate
Tax reference
Fill in these
Q6
Fill in the Trust and Estate Capital
Gains pages if:
boxes first
If you want help, look up the box numbers in the Notes on Trust and Estate Foreign.
Foreign savings
• the trust or estate disposed of
chargeable assets worth more than
£42,400, or
• losses are deducted and the
chargeable gains made by the trust
or estate before losses total more
than the annual exempt amount
(see below), or
• no losses are deducted from the
chargeable gains made by the trust or
estate and the taxable gains total
more than the annual exempt
amount (see below), or
• you want to claim an allowable loss,
or make any other capital gains claim
or election for the year.
If you are the trustee of an unauthorised
unit trust, and any gains are not
chargeable gains by virtue of S100(2)
TCGA 1992, you do not have to fill in
the Trust and Estate Capital Gains pages.
Do not complete these pages if the trust
is a bare trust. Any gains must be
returned by the beneficiaries on their
personal tax returns.
Q23
Make sure you fill in the
Trust and Estate
Non-residence pages
first if, in the period
6 April 2012 to
5 April 2013, you
consider the trust or
estate to be any of
the following:
• not resident in the UK
for Income Tax and
Capital Gains Tax
purposes
• resident in the UK while
also resident in a
country with which the
UK has a Double
Taxation Agreement –
there is a list of
agreements in the Notes
for the Trust and Estate
Foreign pages.
Tax reference
boxes first
-
tick box if income
is unremittable
䊲
Amount
before tax
Foreign tax
Special
Withholding Tax
Amount chargeable
B
C
D
E
£
£
£
£
£
£
£
£
£
£
£
£
see Notes,
page TFN4
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
total of column above
■
tick box to claim
Foreign Tax Credit Relief
䊲
Dividends
- see Notes,
pages TFN4
4.1A
£
£
total of column above
£
4.1
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
and TFN5
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
total of column above
SA904
4.2A
●
HMRC 12/11
£
Amount included in box 4.2 that does not qualify for UK tax credit - see Notes, page TFN5
TRUST AND ESTATE TAX RETURN ■ FOREIGN: PAGE TF1
total of column above
4.2
£
4.2B
£
Please turn over
The Notes on Trust and Estate Non-residence will help you to fill in boxes 6.1 to 6.34.
Helpsheet 294 Trusts and Capital Gains
Tax explains the annual exempt amount
for trusts. Go to
hmrc.gov.uk/helpsheets/hs294.pdf or
phone the Self Assessment Orderline for
a copy. Please contact us if you need
more advice.
If you have to fill in the capital gains
pages you must include all your
allowable losses for the year. If you do
not have to fill them in, because disposal
proceeds and gains were below the
limits, you can still complete them if you
want to claim a capital loss. If you do
not do this, you have to claim any losses
for the year ended 5 April 2013 by
5 April 2017 for them to be available to
set against future gains.
An estate is entitled to the annual
exempt amount equal to that of an
individual (£10,600 in 2012–13) for the
year in which the deceased died, and
the next two years. The estate is not
entitled to any annual exempt amount
for a subsequent year.
The trustees or personal representatives are, as a whole (please tick appropriate box):
Resident in the UK for Income Tax purposes
6.1
Not resident in the UK for Income Tax purposes
6.2
Resident in the UK for Capital Gains Tax purposes
6.3
Not resident in the UK for Capital Gains Tax purposes
6.4
Resident in a country other than the UK (under a Double Taxation Agreement) at the
same time as being resident in the UK
6.5
Tick box 6.6 if the deceased whose estate is being administered was domiciled outside
the UK at the date of death
6.6
Did the trustees or personal representatives change during the year to 5 April 2012?
Yes
6.7
No
Were the trustees or personal representatives resident in the UK for Income Tax
purposes in the year to 5 April 2011?
Yes
6.9
No 6.10
Did the trustees or personal representatives have any overseas income during
the year to 5 April 2012?
Yes 6.11
No 6.12
Did the trustees or personal representatives change during the year to 5 April 2012?
Yes 6.13
No 6.14
Were the trustees or personal representatives resident in the UK for Capital Gains Tax
purposes in the year to 5 April 2011?
Yes 6.15
No 6.16
Did the trustees or personal representatives carry on a trade in the UK through a
permanent establishment that made disposals for capital gains in the year to 5 April 2012?
Yes 6.19
Boxes 6.17 and
6.18 are not used
No 6.20
HMRC 12/11
continued over
Charities Q7
Fill in the Trust and
Estate Charities pages if
the trust is claiming total
or partial exemption
from tax.
Income for the year ended 5 April 2012
TRUST
AND
CHARITIES
TRUST AND
ESTATE
NON-RESIDENCE
TRUST
AND ESTATE
ESTATE
CHARITIES
In general, trustees are entitled to
half the annual exempt amount for
an individual.
Name of trust
Fill in these
boxes first
Name of charity, if different
Tax reference
If you want help, look up the box numbers in the Notes on Trust and Estate Charities.
7.1
Charity repayment reference
Charity Commission Registration Number or
Scottish Charity Number
7.2
If the trust is a charity are you claiming exemption from tax on
all or part of your income and gains?
YES
Have all income and gains that you are claiming to be exempt
from tax been, or are they to be, applied for charitable purposes?
YES
Are you returning information for the year ended 5 April 2012? YES
If not, what period does this return cover?
Period begins
7.3
/
and ends
/
Are accounts to be enclosed with the return?
If 'No', explain why
/
7.4
/
YES
7.5
Income Tax
Amount already claimed on form R68 - see Notes on page TCHN1 7.6 £
Total repayment/payment due
7.8 £
Boxes 7.7, 7.9,
7.11 and 7.13
are not in use
and
further repayment/payment due
7.10 £
or
amounts overclaimed
7.12 £
Has the amount in box 7.10 been included in any
repayment claim on form R68?
YES
Non-exempt amounts should be entered in the appropriate parts of the tax return.
Total turnover from exempt trading activities
7.14 £
Investment income
7.15 £
UK land and buildings income
7.16 £
Gift Aid
Other charities
SA907
Legacies
SA950
HMRC 12/11
HMRC 12/12
• is liable to tax charges
arising from
unauthorised payments
from UK registered
pension schemes or
overseas pension
schemes, or
• received any of the
following payments
from an overseas
pension scheme
– a short service
refund lump sum
– a pension
protection lump
sum death benefit
– an annuity
protection lump
sum death benefit
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 9
7.17 £
7.18 £
7.19 £
Gifts of shares or securities received
7.20 £
Gifts of real property received
7.20A £
Other sources
7.21 £
continued over
– a defined benefits
lump sum death
charge paid where the
deceased had reached
the age of 75 at the
date of their death
6.8
SA906
Interest and
other savings
income
■
A
Fill in the Estate Pension
Charges etc. pages if
the estate:
For the year ended 5 April 2012
TRUSTAND
ANDESTATE
ESTATENON-RESIDENCE
NON-RESIDENCE
TRUST
Name of trust or estate
Fill in these
Fill in columns A to E, and tick the box in column E if you want to claim Foreign Tax Credit Relief.
Country
Estate pension
charges etc.
– an uncrystallised funds
lump sum death
charge paid where the
deceased had reached
the age of 75 at the
date of their death
– a drawdown pension
fund lump sum
death benefit.
These details are relevant
only to personal
representatives. Trustees
do not complete the
Estate Pension Charges etc.
pages.
For more guidance on these
types of payments go to
hmrc.gov.uk/manuals/
rpsmanual
How to fill in pages 3 to 12 of the Trust and Estate Tax Return
Basis of taxation for personal representatives
A personal representative is a person who has been appointed as
either the executor or the administrator of a deceased person's
estate. An executor is a person appointed to carry out the
deceased's wishes as expressed in their will, while an administrator
is appointed to gather in the deceased person's estate and then
distribute it to the deceased's heirs in the absence of a will.
In Scotland the term executor applies in both these situations.
Personal representatives are chargeable to Income Tax on the income
that arises on the assets in the estate. They are chargeable to Income
Tax at the basic rate only. They are not chargeable at the higher
rates of tax, as these apply only to individuals. If personal
representatives sell capital assets from the estate, they are liable to
Capital Gains Tax at the Capital Gains Tax rate of 28%. Capital Gains
Tax may also be due where capital payments or benefits are received
from a non-resident, dual resident or immigrating trust. You can find
more details in the Notes on Trust and Estate Capital Gains.
Personal representatives do not answer Questions 9A and 12 to 16
of the Trust and Estate Tax Return. Special rules apply where:
• the deceased died domiciled outside the UK, or
• the deceased died not resident and not ordinarily resident in
the UK, or
• one or more of the personal representatives is/are resident outside
the UK.
In such circumstances, you should complete the Trust and Estate
Non-residence supplementary pages, before deciding on entries to
be made on the Trust and Estate Tax Return.
Pre-death liability
When someone dies the personal representatives will need to liaise
with the deceased's HM Revenue & Customs office in order to
finalise the tax liability up to the date of death. If tax has been
overpaid then we will make any repayment due for all periods up to
the date of death. If tax is due for any period up to the date of
death the personal representatives are responsible for accounting for
that tax from the estate.
Basis of taxation for trustees
SA950
If any settlor is alive, there is a possibility that the income may be
treated as that of the settlor(s) (although the trustees still have to pay
tax as recipients of income); see questions 3 and 4 in the next
column. The basis of taxation for trustees depends on their residence
status and the type of trust. If you think the trustees as a whole were
not resident in the UK for Income Tax and Capital Gains Tax purposes,
make sure you complete the Trust and Estate Non-residence pages
before filling in the rest of the Trust and Estate Tax Return. Notes for
the Trust and Estate Non-residence pages contain special rules for
completing the rest of the Trust and Estate Tax Return.
Depending on the type of trust, the trustees will either be
chargeable to tax:
• at the standard rates, which are the basic rate (20%) and
dividend rate (10%), or
• at the special trust rates, which are the trust rate (50%) and
the dividend trust rate (42.5%).
Any gains will be chargeable at the Capital Gains Tax rate (28% or
10% if the trustees have claimed Entrepreneurs’ Relief). Where the
income or gains of a charitable trust are not wholly exempt from tax
the trustees will be chargeable to tax at the basic rate (20%),
dividend rate (10%) or Capital Gains Tax rate (28%). The special
trust rates do not apply to charitable trusts.
Please note: certain types of income are taxable at the special trust
rates whether or not the notes that follow show that you are taxable
at the basic or dividend rate only. These include items to be entered
in boxes 9.29 to 9.31 and 9.37A to 9.40 described on pages 15 to
20 of this guide, box 3.22 described in the Notes on Trust and
Estate UK Property pages and boxes 4.6 to 4.8 of the Trust and
Estate Foreign pages. If, apart from this income, you are taxable at
the basic rate only, or you are the trustee of an unauthorised unit
trust, which is generally taxable at the basic rate only, you should
tick box 8.15 and ignore Questions 13 to 15.
HMRC 12/12
Q8
7
■
Basis of taxation for trustees
Trustees: at what rate are you chargeable to Income Tax?
The questions below will help you to decide at what rate you are
chargeable to Income Tax. But see also notes on specific types of
trusts on page 11.
1 Are you the trustees of an
NO
YES
unauthorised unit trust?
If the answer is 'No', go to the next question. If 'Yes', you are
taxable at the basic rate. Tick boxes 8.4 and 8.15.
2 Are you completing this return solely
for income arising from the investment
of service charges received
in connection with residential
NO
properties in the UK?
YES
If the answer is 'No', go to the next question. If 'Yes', you are
taxable at the basic rate only. Tick box 8.15.
3 Is the beneficiary/are all the beneficiaries
absolutely entitled to the whole of
NO
YES
the trust income as it arises?
If the answer is 'No', go to the next question. If 'Yes', you are
taxable at the basic rate only. Tick box 8.15.
4 Can the settlor (or the settlor's spouse or
civil partner) benefit from the capital or
income (other than by way of a
loan of trust monies) in any
NO
YES
circumstances whatsoever?
If the answer is 'No', go to question 6. If 'Yes', go to the
next question.
5 If the settlor's (or the settlor's spouse's or civil partner's) benefit is
conditional on the happening of certain events, the settlor (or the
settlor's spouse or civil partner) may be treated as not being
entitled to benefit. The exceptions are described in
Helpsheet 270 Trusts and settlements – income treated as the
settlor’s. Go to hmrc.gov.uk/helpsheets/hs270.pdf or phone the
Self Assessment Orderline for a copy.
Is the settlor's (or the settlor's spouse's
YES
or civil partner's) benefit dependent on NO
any of the exceptions?
If the answer is 'No', the trust is 'settlor-interested' and you
should tick box 8.12. (But if you are the trustees of an approved
Heritage Maintenance Fund and make an election, see the note
on page 11.) Whether the answer is 'No' or 'Yes' go to the
next question.
NO
YES
6 Do you have power to accumulate
income under the terms of the trust?
If the answer is 'No', go to question 8. If 'Yes', go to question 7.
7 Is/are the beneficiary/ies immediately
entitled to the accumulated income
NO
YES
either as part of the capital or as a
separate fund?
If the answer is 'No', you are taxable at the special trust rates.
Tick box 8.16. If 'Yes', you are taxable at the basic rate only.
Tick box 8.15.
8 Do you (or any other person/s) have
discretion over the amount of income
received by any beneficiary
or beneficiaries?
NO
YES
If the answer is 'No', you are taxable at the basic rate only.
Tick box 8.15. If 'Yes', you are taxable at the special trust rates.
Tick box 8.16.
If you are taxable at the basic rate only ignore Questions 13 to 15.
If you are taxable at the special trust rates answer all
the Questions.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 10
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Notes on specific types of trusts
boxes 8.5 and 8.6
An employment related trust is a trust
set up by an employer, or by, for example, another trust, for the
benefit of employees.
Basis of taxation for trustees of a Heritage Maintenance Fund
boxes 8.7 and 8.8
If you are the trustee of a Heritage
Maintenance Fund, tick boxes 8.8 and 8.16. The trustees are taxable
at the special trust rates.
If the settlor is alive and has retained an interest in the trust
property, tick box 8.12. Where this is the case:
• if the Heritage Maintenance Fund has not been approved for
Inheritance Tax purposes by way of a direction from
HMRC Inheritance Tax, the settlor will be taxable on the
trust income but the trustees remain taxable at the special
trust rates, or
• if the Heritage Maintenance Fund has been approved for
Inheritance Tax purposes, the settlor will be taxable on the trust
income as above unless the trustees make an election for the
income to be taxed on the trustees instead, in which case the
settlor will not be taxable. If you intend to make such an election
but have not yet done so, the settlor is taxable on the income.
Employer Financed Retirement Benefit Scheme (EFRBS)
boxes 8.9 and 8.10
Tick box 8.10 if you are the trustee of an
EFRBS. You must also enter the date the scheme first came into
operation, if this happened in the year to 5 April 2013, in
box 21.11 on page 12.
The responsible person for the scheme must tell us of the
date the scheme first comes into operation and must do so by
31 January following the tax year in which it happens. A scheme
comes into operation as soon as one of the following
events happens:
• an employer makes a contribution to the scheme, or
• relevant benefits are provided.
The Trust and Estate Tax Return can be used to give notification of
the scheme first coming into operation as long as it is submitted
within the time limit. If you are using this tax return to give
notification and you are not the responsible person you must give
the name and address of that person in box 21.11 on page 12.
You must still show the date in box 21.11 on page 12, if it occurred
during the period covered by this tax return, even if the responsible
person has given notification by other means.
The responsible person will be one of the trustees of the scheme, as
long as that person is resident in the United Kingdom. If there are
no trustees who are resident in the United Kingdom then the
responsible person will be one of the persons listed below, taken in
the following order:
• a person who controls the management of the scheme
• an employer who established the scheme or any person who has
succeeded that employer
• an employer of employees who benefit from the scheme
• a trustee of the scheme who is not resident in the United Kingdom.
You will be liable to tax at the special trust rates, so tick box 8.16.
SA950
Share Incentive Plans
The trustees of a Share Incentive Plan will be chargeable at the
dividend trust rate on dividends from shares that have not been
awarded to participants within two years of being acquired by the
trustees. In the case of shares which are not readily convertible
into cash this period is extended to five years. (If shares become
readily convertible into cash within the five-year period, the period
is changed to two years beginning on the date on which they
became readily convertible into cash, if that ends before the
HMRC 12/12
original five-year period.) The period is extended to 10 years where
a company is allowed a deduction against Corporation Tax for a
payment made to the trustee which is then used to acquire shares
in the company. For the company to get the deduction, the
shares must not be acquired from a company and at the end of
12 months from the date of acquisition the trustee must hold
more than 10% of the ordinary shares in the company. Any
additional tax at the dividend trust rate on dividends received
during the period will be chargeable in the tax year when it
becomes clear that they will not be awarded within the relevant
period. Income from other sources (for example, untaxed interest)
remains chargeable at the trust rate. Tick box 8.16 and enter the
income in Question 9 of
the tax return.
Trustees who are participators in an underlying
non-resident company
boxes 8.13 and 8.14
An underlying non-resident company is
a company that would be classified as a 'close company' if it were
resident in the UK. Broadly speaking, a 'close company' is one
under the control of either the directors or no more than five
'participators'. A 'participator' is a person having a share or interest
in the capital or income of the company.
The gains arising to such a company may be chargeable on
resident trustees. In the case of non-resident trustees the gains may
be charged on the settlor or beneficiaries. There is more
information in Helpsheet 299 Non-resident trusts and Capital Gains
Tax, go to hmrc.gov.uk/helpsheets/hs299.pdf
and Helpsheet 301 Beneficiaries receiving capital payments from
non-resident trusts: calculation of the increase in tax charge available,
go to hmrc.gov.uk/helpsheets/hs301.pdf.
The income arising to such a company may be chargeable on the
settlor or beneficiaries. You can find more information in the
Foreign notes (for individuals) on page FN 11 under the heading
'Dividends and all other income received by a person abroad' and
page FN 17 in the note for box 42.
Trustees who are liable at the special trust rates
boxes 8.15 and 8.16 The first £1,000 of income, which
would otherwise be chargeable at the special trust rates, is instead
chargeable at the basic or dividend rate, depending on the nature
of the income. This is known as the standard rate band. You
should tick the 'Yes' box at 8.16 even if your income does not
exceed £1,000 if you would otherwise be chargeable at the special
trust rates but for the standard rate band.
Service charges and sinking funds for residential property in
the UK
Tenants and owners of properties in the UK often make
contributions to service charge funds or sinking funds. These funds
pay for a variety of services and sometimes accumulate money for
future repairs. For example, residents of a block of flats may all pay
a set amount each year to cover the day-to-day running costs of
the block, such as cleaners and minor repairs. Funds may also be
put aside to pay for future major expenditure such as a roof repair.
The person receiving the contributions, such as a landlord or flat
management company, often holds the funds on trust for the
tenants or property owners. The funds are usually held on deposit
and so the only income likely to arise is bank or building society
interest. Income arising from the investment of service charges and
sinking funds, which are held on trust for tenants or other owners
of properties, is chargeable at the basic rate.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 11
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Overseas employment – related pension schemes
Income derived from investments or deposits held for the purposes
of a s615(3) scheme is not chargeable to tax at the special trust rate.
Proceed to boxes 13.13 to 13.18 to report this income and make a
note in the ‘Additional information’ box, box 21.11 on page 12, that
this is a s615(3) scheme. The main rules of a s615(3) scheme are that:
• the scheme is set up under irrevocable trust in connection
with some trade or undertaking carried on outside the
United Kingdom and
• the scheme's sole purpose is for the provision of retirement
benefits relating to employment carried out wholly outside the
United Kingdom.
Vulnerable beneficiaries
boxes 8.17 and 8.18 Certain trusts may qualify for
special tax treatment if a beneficiary falls within the definition of a
vulnerable beneficiary. To find more details go to
hmrc.gov.uk/trusts/types/vulnerable.htm
If a valid election for special tax treatment has been made, tick
box 8.18 even if you do not intend to make a claim for special
treatment this year.
Q9
Did the trust or estate receive any
other income not already included
on the supplementary pages?
– a conversion of a building society to a company, or
– a takeover of a building society by a company,
there may be liability to either Income Tax or Capital Gains Tax.
The building society may be able to tell you whether there is any tax
liability. If not, you should ask us or your tax adviser.
If the trust or estate has received cash, then:
• if the payment is liable to Income Tax (which is likely if it was
received following a building society merger) you should enter it
in boxes 9.12 to 9.14 in the Trust and Estate Tax Return. If you
are not sure whether the amount is liable to Income Tax include
it in boxes 9.32 to 9.34, then tick box 21.5 on page 12 of the
Trust and Estate Tax Return and give full details of the payment in
the 'Additional information' box, box 21.11
• if the payment is liable to Capital Gains Tax (which is likely if it
was received following a conversion or takeover of a building
society), you should calculate the gain and add it to any other
chargeable gains for the year. Use your total gains and your total
proceeds when deciding whether you need to fill in the Trust and
Estate Capital Gains pages. (See Question 5 on page 3 of the
Trust and Estate Tax Return.)
If the trust or estate received shares following a building society
takeover or conversion, then you may need to supply details when
you dispose of those shares. Please ask us for details.
If the trust or estate income is in the list of inclusions for this
question, tick the 'Yes' box and fill in the relevant boxes in the
Trust and Estate Tax Return. If not, go to Question 10A.
Filling in boxes 9.1 to 9.40
.
If you do not tick the 'Yes' box, go to Question 10A.
Otherwise, check the following lists to see whether the trust's or
estate's other income should be included in the Trust and Estate
Tax Return.
Exclude:
• Premium Bond, National Lottery and gambling prizes
• interest and terminal bonuses under Save As You Earn schemes
• accumulated interest on National Savings & Investments
Certificates, including index-linked certificates
• interest on National Savings & Investments Children's
Bonus Bonds
• interest awarded by a UK court as part of an award of damages
for personal injury or death
• dividends on ordinary shares in a Venture Capital Trust
• if you are the trustee of an interest in possession trust, untaxed
income which you have mandated to the beneficiary(ies)
• income from certain government securities in an interest in
possession trust where the beneficiary is not ordinarily resident in
the UK.
Include:
SA950
• interest and alternative finance receipts from UK banks or
building societies and from UK internet accounts
• interest from savings held at an overseas branch of a UK bank or
building society
• income or distributions from UK authorised unit trusts,
UK open-ended investment companies and investment trusts
• income from National Savings & Investments, including First
Option Bonds and Guaranteed Income Bonds and Guaranteed
Growth Bonds (previously called Fixed Rate Savings Bonds)
• other savings income, including accrued income profits on
disposal of securities, annuities and deeply discounted securities
• any other income not included on supplementary pages
(see page 18)
• income from estates, where that income has been passed to the
trustees of discretionary or accumulation trusts.
If the trust or estate has:
• received cash as a result of a merger of two or more building
societies, or
• received cash, or been issued with shares, or received both cash
and shares, as a result of either
HMRC 12/12
First, collect the information you might need. For example:
• dividend vouchers (or electronic equivalents)
• interest statements or tax deduction certificates
(or electronic equivalents)
• trust vouchers. If the trust or estate is entitled to income of a
trust (other than a discretionary trust) the trustee should
provide you with a voucher identifying the various sources of
income to which you are entitled.
Then, use the following notes to help you fill in the boxes.
They ask for totals. You can use page 28 of this guide to list
individual accounts and add them up.
■
Interest and alternative finance receipts
What to do if there is more than one source of interest or
alternative finance receipts to go in a particular box
Add together, for example, interest paid (with tax taken off) by the
bank and building society and put total figures in boxes 9.2 to 9.4.
Keep details of the separate accounts in case we ask for these later.
Use the Working Sheet on page 13 to help you.
●
Interest and alternative finance receipts from UK banks and
building societies
Boxes 9.1 to 9.14 cover interest and alternative finance receipts
from savings with banks and building societies. You can find more
information at hmrc.gov.uk
Interest and alternative finance receipts received without tax
taken off
box 9.1
The bank or building society statement will show you
the interest or alternative finance receipt received without tax taken
off (gross). Add up all the amounts received during 2012–13 from
all accounts and enter the total in box 9.1.
National Savings & Investments interest should not be included here
but in box 9.8.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 12
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Interest and alternative finance receipts received after tax has
been taken off
If the trust sells or transfers the right to income without disposing of
the asset from which the income arises, the consideration that is
receivable in return for the transfer is treated as trust income.
boxes 9.2 to 9.4
Include it in the box in which the income would have been entered
had it not been transferred. If the market value of the right is
substantially greater than the consideration that is receivable, then
the market value of the right (rather than the consideration) is
treated as trust income. If this is the case, include the market value
of the right in the box in which the income would have been
entered had it not been transferred.
Interest and alternative finance receipts are
generally paid after tax is taken off. The bank or building society
statement or passbook will usually show the amount of interest or
alternative finance receipt after tax (sometimes described as net
interest or net alternative finance receipt), the amount of tax taken
off, and the amount of interest or alternative finance receipt before
tax taken off (gross interest or gross alternative finance receipt).
Use this Working Sheet to help you fill in boxes 9.2 to 9.4
Step 1
In Column A enter the name of the first bank or building society account.
Step 2
Look at the interest or alternative finance receipts on the statement or passbook. If there are three figures
copy the one described as 'before tax' or 'gross' to Column D, the 'tax deducted' or 'tax taken off' to
Column C and the 'net amount' to Column B.
It may be that the statement only shows 'gross amount' and 'tax deducted' or 'tax taken off', or just
the 'net amount'. Copy what is on the statement to the appropriate columns. Step 4 tells you how to
fill in the missing figures.
Step 3
Repeat Steps 1 and 2 for each of the accounts.
Step 4
If you are missing figures from any of the columns work them out as follows:
• if you have entries in Columns C and D, Column B = Column D minus Column C
• if you have only got an entry in Column B, Column C = Column B x 25% and
Column D = Column B + Column C.
Step 5
Total Columns B, C and D.
Step 6
Round down to the nearest pound Columns B and D. Round up to the nearest pound Column C.
Enter the results in boxes 9.2 to 9.4. This may mean that box 9.4 does not exactly equal
box 9.2 plus box 9.3 but do not worry. Finally, copy the figures to boxes 9.2 to 9.4 on page 4
of the Trust and Estate Tax Return.
Column B
Amount after
tax taken off
(Net)
Column A
Bank or building society etc. accounts
SA950
Totals before rounding
Totals after rounding – copy to boxes 9.2 to 9.4 on
page 4 of the Trust and Estate Tax Return
HMRC 12/12
9.2
Column C
Tax
taken off
Column D
Amount
before tax
taken off (Gross)
£
.
£
.
£
.
£
.
£
.
£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
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£
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 13
9.3
£
9.4
£
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
●
• interest from securities where Accrued Income Scheme losses
are available (see the note on page 20).
Other taxed UK interest distributions
boxes 9.5 to 9.7
The information you need to complete these
boxes will be shown on the trust’s or estate's tax voucher. The
voucher will show the total interest distribution before the tax is
taken off (gross interest), the tax taken off and the amount of the
interest distribution paid after tax has been taken off (net interest).
It may have accumulation units or shares, that is, the interest
distribution is automatically reinvested in the unit trust or
open-ended investment company. If so, you must still show the
total interest distribution before tax, the tax taken off and the
amount of the interest distribution after tax has been taken off.
If you do not have a tax voucher (which may have been provided to
you in electronic format), ask the unit trust or open-ended
investment company manager for one.
If you have received an interest distribution without tax being
deducted, you should include the total interest distribution in
box 9.7 and enter '0' in box 9.6.
Do not enter here any amount shown on the tax voucher as
'equalisation'. This amount, if shown, is a repayment of capital paid
and is not subject to tax. In calculating capital gains, the amount of
equalisation should be deducted from the cost of the units or shares
purchased during the year.
Do not include dividend distributions from UK authorised unit
trusts, open-ended investment companies or investment trusts
in boxes 9.5 to 9.7. They go in boxes 9.18 to 9.20.
●
National Savings & Investments
box 9.8
Enter in box 9.8 the total amount from the following:
Direct Saver
Easy Access Savings Account (EASA)
Investment account
Income bonds
Capital bonds (enter the interest added in the year to the capital
bonds as shown on your statement)
• Pensioners' Guaranteed Income Bonds.
●
National Savings & Investments First Option Bonds,
Guaranteed Income Bonds and Guaranteed Growth Bonds
(previously called Fixed Rate Savings Bonds)
•
•
•
•
•
boxes 9.9 to 9.11
This interest is received after tax has been
taken off. Enter in boxes 9.9 to 9.11:
• the total interest received after tax taken off
• the total tax taken off
• the total interest received before tax was taken off.
●
Other income from UK savings and investments
Depending on the nature of the interest, it may be paid without tax
taken off (gross), or after tax has been taken off (net).
If no tax has been taken off, enter the interest received in
box 9.12 and box 9.14, leave box 9.13 blank.
If tax has been taken off, fill in all the boxes. Make sure the figure
in box 9.14 includes the tax taken off.
Purchased life annuities
Income from a purchased life annuity should be included in
boxes 9.12 to 9.14. Income will only be part of the payment
received – check the payment certificate. Do not put the rest of the
payment on the tax return. Income will usually be received from a
purchased life annuity after the payer has taken tax off.
A purchased life annuity is not a retirement annuity, nor the result
of contributions made to a personal pension plan. All other
annuities, including annuities under personal pension schemes,
retirement annuity contracts or retirement annuity trust schemes,
should be entered in boxes 9.32 to 9.34.
■
Dividends
Dividends including stock dividends, dividend distributions and
qualifying distributions carry a tax credit which cannot be repaid:
• if the trust pays tax only at the basic rate, the tax credit at the
dividend rate meets the tax bill on the distribution
• if the trust pays tax at the special trust rates, the total of the
dividend and the tax credit is taxed at the dividend trust
rate (42.5%) and the tax credit is treated as tax already set
against this.
As personal representatives only pay tax at the basic rate, the
tax credit meets the liability and there is no more tax to pay.
●
Dividends and other qualifying distributions from
UK companies
Dividends received by trustees of unauthorised unit trusts
Since 6 April 1999 the trustees of an unauthorised unit trust have
not been entitled to a tax credit where they receive a dividend or
other qualifying distribution from a UK company (including a
dividend distribution received from a UK authorised unit trust or
open-ended investment company). This means that the measure of
the trustees' income for Income Tax purposes will be the amount
of dividend received. Trustees should not make any entries in
boxes 9.15 to 9.23 but the notes to those boxes will help in
determining what is to go instead in boxes 9.24 and 9.25.
boxes 9.15 to 9.17
Dividends
boxes 9.12 to 9.14
Include totals of the following items of
income in boxes 9.12 to 9.14. Keep details in case we ask for more
information later.
SA950
Interest not included in boxes 9.1 to 9.11
Include in boxes 9.12 to 9.14 any interest received which is not
included in boxes 9.1 to 9.11. For example:
• from certificates of tax deposit when the certificate is applied in
payment of a tax liability
• on government stocks (gilts), including those bought through
the National Savings & Investments Stock Register
• on other loan stocks
• on loans to an individual or organisation
• from credit unions and friendly societies
• interest from Enterprise Zone Trusts (the rents should be included
in the Trust and Estate UK Property pages)
HMRC 12/12
Do not include distributions from the tax exempt profits of a
UK Real Estate Investment Trust ('UK REIT') or a Property
Authorised Investment Fund ('PAIF') (such distributions are
known as Property Income Distributions, or PIDs, and are
normally paid under deduction of Income Tax). Use boxes 9.32
to 9.34 instead.
The dividend voucher shows the amount of the dividend and the
tax credit. Add these together to get 'dividend/distribution plus
credit' in box 9.17.
If the trustees of a will trust have received any dividend income in
the year from the personal representatives distributing the income
that arose during the administration period, they should enter the
dividends in boxes 9.15 to 9.17. This income will be chargeable on
the trustees at the dividend trust rate (42.5%). Do not include
stock dividends here. These go in boxes 9.21 to 9.23.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 14
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Other qualifying distributions
A company makes a distribution when it passes value to a
shareholder, for example:
• by selling an asset to a shareholder at less than market value, or
• by paying interest at more than a commercial rate on a loan.
Non-qualifying distributions are defined in the column aside and
should be put in boxes 9.26 to 9.28. Other distributions
are 'qualifying'.
Enter the amounts in boxes 9.15 to 9.17. Please give details in the
'Additional information' box, box 21.11, on page 12 of the Trust
and Estate Tax Return, explaining the circumstances in which the
distribution arose.
Transfer of the right to income
If the trust sells or transfers the right to income without disposing
of the asset from which the income arises, the consideration that is
receivable in return for the transfer is treated as trust income.
Include it in the box in which the income would have been entered
had it not been transferred. If the market value of the right is
substantially greater than the consideration that is receivable, then
the market value of the right (rather than the consideration) is
treated as trust income. If this is the case, you should include the
market value of the right in the box in which the income would
have been entered had it not been transferred.
●
Dividend distributions from UK authorised unit trusts and
open-ended investment companies
boxes 9.18 to 9.20
The dividend voucher shows the amount
of the dividend and the tax credit. Add these together to get
'dividend/distribution plus credit' in box 9.20.
If the trust or estate has accumulation units or shares the dividend
is automatically reinvested in the unit trust or open-ended
investment company. You must still show the amount of the
dividend, tax credit and dividend/distribution plus credit.
If you do not have a dividend voucher, ask the unit trust or
open-ended investment company manager for one.
Do not enter here any amount shown on the dividend voucher as
'equalisation'. This amount, if shown, is a repayment of capital and
is not subject to tax. In calculating the capital gains, the amount of
equalisation should be deducted from the cost of the units or
shares purchased during the year.
●
Stock dividends from UK companies
boxes 9.21 to 9.23
If the trust or estate took up an offer of
shares in place of a cash dividend, this is a 'stock' dividend.
The dividend statement should have 'the appropriate amount in
cash' or 'the cash equivalent of the share capital' on it – this is the
amount you should enter in the dividend box. Ask the company for
a statement if you have not already got one. If you have any
doubts about what to include, contact us or your tax adviser.
Trustees of an unauthorised unit trust should enter this amount in
box 9.25 and should not make any entries in boxes 9.21 to 9.23.
Enter in box 9.21 the appropriate amount in cash/cash equivalent
of the share capital. Enter in box 9.22 the notional tax (this is 1/9 of
the appropriate amount in cash/cash equivalent of the share
capital). Add together the figures in boxes 9.21 and 9.22 and enter
the total in box 9.23.
SA950
●
Dividends and other qualifying distributions received by
unauthorised unit trusts
box 9.24
Enter in box 9.24 the total of the actual amount of
dividends (and other qualifying distributions) received on or after
HMRC 12/12
6 April 2012 from UK companies including dividends from
authorised unit trusts and open-ended investment companies.
Do not add on the amount of the tax credit shown on the
dividend voucher.
●
Stock dividends received by unauthorised unit trusts
box 9.25
Enter in box 9.25 the 'appropriate amount in
cash/cash equivalent of the share capital' following the notes to
boxes 9.21 to 9.23.
●
Non-qualifying distributions and loans written off
boxes 9.26 to 9.28
A non-qualifying distribution is:
• a bonus issue by a company of securities or redeemable shares
(except a bonus issue giving rise to a qualifying distribution), or
• the paying on of such a bonus issue by a company which has
itself received it.
If the trust or estate receives such a bonus issue of securities or
redeemable shares, the amount of the distribution is:
• for redeemable shares, their nominal value plus any
premium payable
• for securities, the amount of the principal secured plus any
premium payable
minus any new consideration given for that issue.
The trustees of an unauthorised unit trust should calculate the
amount of the non-qualifying distribution and include that amount
in box 9.25 along with any stock dividends. The remaining notes in
the section do not apply to unauthorised unit trusts. Enter in the
'Additional information' box, box 21.11, on page 12 of the Trust and
Estate Tax Return, any relevant information about how the amount
in box 9.25 is calculated.
If the trust pays tax only at the basic rate, there is no more tax to
pay on the distribution.
Since estates pay tax only at the basic rate, the tax credit meets
the liability.
If the trust pays tax at the special trust rates an amount of
dividend rate tax is treated as already paid and is set against
the tax bill.
Enter the amount of the distribution in box 9.28. Multiply
box 9.28 by 10% to arrive at the dividend rate tax which is treated
as paid by you. Enter that amount in box 9.27 and in box 9.26 the
difference between boxes 9.28 and 9.27.
Where a loan or an advance, made by a close company to a
participator or associate, is wholly or partly released or written off,
the amount released or written off plus the notional tax (this is
1
/9 of the amount released or written off) is treated as income.
If the loan or advance was made to a person who has since died,
the income is treated as that of the person from whom the debt is
due at the time of release or writing off. (If it is due from the
person as personal representative, the amount treated as received
by them is included in the income of the estate.)
Include in box 9.26 the amount of the loan released or written off.
Multiply this figure by 1/9 and put the result in box 9.27.
Add together the figures in boxes 9.26 and 9.27 and put the result
in box 9.28.
If you do not know what to include, contact us or your tax adviser.
■
Gains on UK life insurance policies, life annuities and
capital redemption policies
boxes 9.29 to 9.31
These boxes are only for gains from life
insurance policies, life annuities and capital redemption policies
taken out with a UK life insurance company, the UK branch of an
overseas insurer or a UK friendly society.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 15
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Gains from foreign policies do not go in these boxes. See 'Is your
policy a 'foreign policy'?' below for more guidance. Include details
of gains on foreign policies on the Trust and Estate Foreign pages.
For a copy go to hmrc.gov.uk/forms/sa904.pdf or phone the
Self Assessment Orderline.
according to this guidance. If you think a gain might have been
made on one of these policies taken out before 17 March 1998,
but you have not received a certificate, contact your insurer.
In these notes, 'gains' are chargeable event gains which are taxable
as income. Insurers sometimes call these 'chargeable gains' but they
are not capital gains so capital losses and other reliefs allowable in
calculating capital gains cannot be set against them. This means
that chargeable event gains should not be included on the Trust
and Estate Capital Gains pages. The purpose of these notes is to
help you to decide whether there is a gain and, if so, what to
include in the return.
Helpsheet 320 Gains on UK life insurance policies, contains more
information and general guidance about how gains are taxed.
In addition, it explains how the rules apply to a trust created by
more than one person, says more about 'enhancements' and
explains about the taxation of Personal Portfolio Bonds. Go to
hmrc.gov.uk/forms/sa320.pdf
Have you received a certificate reporting a gain on a
chargeable event?
UK insurers must by law issue a certificate if they know a gain has
been made on a life insurance policy, life annuity or capital
redemption policy. In most cases therefore, if a gain has arisen, you
will have received in your capacity as a personal representative or a
trustee a certificate from the insurer reporting the gain. If you have
received a certificate from the insurer, read the sections headed
'Personal representatives' and 'Trustees including trustees of
charitable trusts' as appropriate. Follow the instructions in those
sections and in the section headed 'Completion of boxes 9.29
to 9.31'.
If you have not received a certificate but during the year any of the
following applied in connection with a UK life insurance policy, life
annuity or capital redemption policy held by the trust or estate
then a gain may still have arisen:
• cash or other benefits were received from the policy or life
annuity by part-withdrawal or on a surrender, maturity or death
• the whole or part of the policy or life annuity was sold
• a loan was made to you or, at your direction, to someone else,
either by the insurer or by arrangement with the insurer
• the policy or life annuity was a Personal Portfolio Bond in the
year (even if the insurer has not paid cash or other benefits
during the year in connection with that bond).
A certificate may not have been received for a number of reasons.
The insurer may not have an up-to-date address, or the insurer
does not know about the event giving rise to the gain or fails to
recognise that a gain has arisen. For instance, the policy may have
been assigned to someone else, or the insured person may have
died, and the insurer has not been informed.
If this may have happened, you should ask your insurer to tell you
what sort of policy or annuity is held on trust or in the estate and
whether there has been a chargeable event and a gain. If so, you
should also ask for a copy of the chargeable event certificate.
Is your policy a 'foreign policy'?
You may not have received a chargeable event certificate because
the policy is a foreign policy taken out before 6 April 2000.
A foreign policy is normally one issued by an insurer from outside
the UK. Gains on foreign policies go on the Trust and Estate Foreign
pages. Go to hmrc.gov.uk/forms/sa904.pdf or phone the
Self Assessment Orderline for a copy. (See the notes on boxes 4.6
to 4.8 of the Foreign pages and Helpsheet 321 Gains on foreign life
insurance policies. Go to hmrc.gov.uk/helpsheets/hs321.pdf for
a copy of the helpsheet.)
SA950
A UK insurer may also issue a foreign policy as part of its 'Overseas
Life Assurance Business'. This is a type of policy sold by a UK insurer
to a person who, at the time it was taken out, was residing outside
the UK. If the policy was taken out on or after 17 March 1998,
gains from this type of policy go on the Foreign pages.
Gains from Overseas Life Assurance Business policies which were
taken out before 17 March 1998 are not treated as arising from
foreign policies and should be entered in boxes 9.29 to 9.31
HMRC 12/12
General guidance for trustees and personal representatives
Not all payments from, or assignments of, life insurance policies or
other insurance contracts give rise to gains. In particular (but not
exclusively), there is likely to be no gain where:
• a payment has been received under a mortgage endowment
policy or a friendly society tax-exempt policy which has run for
more than 10 years, or
• a payment has been received under a policy for which a single
premium was paid and the payment received is 5% or less of
the premium, or
• all or part of the policy has been gifted to someone else.
Pension annuities also do not give rise to gains.
Does the gain need to be included on the Trust and Estate
Tax Return?
A gain may be taxable on some person other than the trustees or
the personal representatives. To determine whether a gain reported
by a certificate from the insurer needs to be included on the Trust
and Estate Tax Return, go to the section headed 'Personal
representatives' or the section headed 'Trustees including trustees of
charitable trusts' as appropriate.
Personal representatives
Many policies and life annuities terminate as a result of the death of
their beneficial owner. If so, the gain is treated as income of the
deceased arising immediately before death. If a policy is held in a
trust created by the deceased or to which the deceased
contributed, the gain arising on death is also treated as the
deceased's income arising immediately before the death. This is
also the case where the policy which is held in trust continues to
run after death and is surrendered or matures after death but
before the start of the next tax year on the following 6 April.
But where the life insurance policy, life annuity or capital
redemption policy:
• continues to run after death, and
• is not held in trust,
any gain arising in connection with the continuing policy or
annuity when it matures, is surrendered or sold, is treated as
income of the estate.
The personal representatives only have to enter details of the gain
in the return when the gain has no tax treated as paid on it.
With UK policies this will be the case if:
• the personal representatives have sold or surrendered part or all
of a tax-exempt policy sold by a friendly society, or
• such a policy has matured and, exceptionally, given rise to a
gain, or
• the personal representatives have sold or surrendered part or all
of certain UK life annuity contracts, or
• the personal representatives have agreed to commute future
annuity payments in return for a lump sum
while the policy or contract was an asset of the estate. The
chargeable event certificate will confirm that no tax has been
treated as paid. Enter the details in box 9.29.
Gains on all other UK life insurance policies, capital redemption
policies and life annuities are treated as if tax at the basic rate has
been paid on them. Personal representatives therefore have no
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 16
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
further liability to tax on such gains and they should not enter any
amount for them in boxes 9.30 and 9.31.
Gains on foreign insurance policies and contracts go in boxes 4.6
to 4.8 of the Trust and Estate Foreign pages. You can find more
guidance in the notes on the Foreign pages and in Helpsheet 321
Gains on foreign life insurance policies. Go to
hmrc.gov.uk/helpsheets/hs321.pdf
Trustees including trustees of charitable trusts
If the rights under a policy or life annuity are held in trust, any gain
is usually treated as income of the person who created the trust, not
of the trust itself. If this is the case, you should send copies of any
chargeable event certificates reporting the gain to this person.
If the trust is a charity, however, then any gain is treated as income
of the trustees of the charity and you should complete boxes 9.29
to 9.31 in accordance with the guidance in the section below
headed 'Completion of boxes 9.29 to 9.31'. Such gains are taxable
on the trustees at the basic rate.
The gain is deemed to be income of the trustees of a trust, which is
resident in the UK and is not a charity, if the trust or trusts were
created by:
• an individual who is not resident in the UK, or
• an individual who was deceased at the time of the chargeable
event unless the gain arose before the end of the year of
assessment in which the creator of the trust died, in which case
it is treated as income of the deceased, or
• a company or other entity that is non-resident, has been
dissolved, wound up or has otherwise come to an end, or
• a body or person other than an individual, such as another trust
(but only if the policy was taken out on or after 9 April 2003).
This rule also applies where the rights under a policy or life annuity
are held as security for a debt owed by UK trustees. Where a gain is
treated as income of UK trustees, and the trust is not a charity, it is
taxable at the trust rate. Trustees should not, however, return gains
on the Trust and Estate Tax Return in the following two situations.
The first situation is where the trust is a bare trust. A gain on a
policy or life annuity held in a bare trust is treated as income of the
beneficiary of the trust. It should be included in the pages of the
beneficiary's tax return for chargeable event gains – in the
Additional information pages, other UK income boxes, boxes 4 to 7
on page Ai 1 for UK policies and life annuities. You should send a
copy of any certificates which you have received reporting such
gains to the relevant beneficiary.
The second situation is where:
• the policy or life annuity was taken out before 17 March 1998,
and
• it has not been 'enhanced' on or after 17 March 1998 by paying
additional premiums or in any other way, and
• the trust or trusts were created by an individual who died before
17 March 1998, or if created by more than one person, at least
one of those persons was an individual who died before this date.
In these circumstances, neither the trustees nor the creators of the
trust are liable for tax on the gain.
SA950
Completion of boxes 9.29 to 9.31
The completion of these boxes will be assisted by information
shown on the chargeable event certificates reporting the gains
which are treated as income of the personal representative and
trustees, including trustees of charitable trusts. Apart from when
there has been a sale or assignment, the certificate will show the
following information:
• the policy details
• the type of event giving rise to the gain and the date when
it occurred
• the amount of the gain
• whether basic rate tax is treated as paid on the gain and, if so,
how much
HMRC 12/12
• the number of years either since the policy was taken out or
since the last event, whichever is the less (although this
information is not relevant for the tax liabilities of personal
representatives and trustees).
In some cases, the insurer may have sent you more than one
certificate relating to a particular gain, with the later certificate
showing a revised figure of benefits paid or amount of chargeable
gain. In this case, you should use the details on that later certificate.
You should first make sure that the gain is taxable in 2012–13.
The certificate may show one date relating to the event giving rise
to the gain or it may include two dates. If the certificate only shows
one date then this is the date of the event. If this falls in the year
ended 5 April 2013 then the gain must be entered in the tax return
for 2012–13. If the certificate shows two dates relating to the event
then only enter the gain on the tax return for 2012–13 if the later
of these dates falls in the year ended 5 April 2013. This later date is
the final day of an 'insurance year' in which the event occurred.
An 'insurance year' (which may also be referred to as 'policy year') is
usually a 12-month period beginning on the anniversary of the
date on which the policy was taken out. For instance, a policy
taken out on 1 July 1998 would have an insurance year ending on
30 June 2012. If, using the same policy example, you made a part
surrender on 31 January 2013, the certificate would show both the
date of the part surrender, 31 January 2013, and the end of the
insurance year, 30 June 2013. The gain would go on next year's
tax return for 2013–14, not this one, because 30 June 2013 falls in
the 2013–14 tax year.
If the event is other than a sale or assignment for money or money's
worth then the certificate will also show the gain and any basic rate
tax treated as paid.
Personal representatives and trustees should enter in box 9.29 the
total gains treated as their income if the certificate does not show
any tax treated as paid.
Trustees should enter the total gains treated as their income that
are treated as having been taxed in box 9.31 and the tax treated
as paid in box 9.30. The tax treated as paid is 20% of the amount
in box 9.31. Personal representatives should not make any entry in
boxes 9.30 and 9.31.
If the event is a sale or assignment for money or money's worth
then the certificate will show the same information as for other
events apart from the amounts of the gain and the tax treated as
paid. It will show:
• whether (but not how much) tax is treated as paid on the gain
• the total previous gains, if any
• the premiums or consideration paid
• the amount of previous capital payments (or relevant capital
payments), if any
• the value of parts previously assigned, if any, and
• for purchased life annuities, the capital elements paid on account
of the annuity.
Using this information and the value received for disposing of
the policy, you can calculate the gain and tax treated as paid.
Helpsheet 320 Gains on UK life insurance policies gives you help
with the calculation. Go to hmrc.gov.uk/helpsheets/hs320.pdf
or the Self Assessment Orderline. You should then complete
boxes 9.29 to 9.31 as above.
Multiple gains
If, in your capacity as personal representative or trustee, there is
more than one gain to include on the Trust and Estate Tax Return,
add together the amounts of the gains and any tax treated as paid
and enter the totals for each in boxes 9.29 to 9.31, as appropriate,
according to the guidance above.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 17
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
■
Other income
box 9.32
There are many types of transaction which produce taxable income.
Examples include:
• dividends from the tax exempt profits of a UK Real Estate
Investment Trust or Property Authorised Investment Fund (PAIF)
• all casual earnings not declared elsewhere on the Trust and
Estate Tax Return, including 'one off' freelance income
• receipts under covenants entered into for genuine commercial
reasons which are in connection with the payer's trade,
profession or vocation
• profits from isolated literary or artistic activities
• rental from leasing equipment the trust or estate owns
• Accrued Income Scheme profits on the transfer of securities
(trustees only)
• underwriting or sub-underwriting commissions
• income received after interest in a business has ceased, or
received following a change in the basis on which the profits of
that business are calculated. This applies only if the income
would not otherwise have been taken into account for tax
purposes during the life of the business - for examples see 'Post
cessation and similar business receipts' in the next column
• any recoveries of expenses or debts for which you claimed relief
as a post cessation expense
• sale of patent rights if a capital sum was received
• annual payments received in the year including annual
payments received from UK unauthorised unit trusts, and
annual payments paid by former employers which do not
constitute the payment of a pension
• income from an estate in administration distributed to
trustees of an accumulation or discretionary trust by the
personal representatives.
The income or losses from transactions relating to an activity
which amounts to a trade should be included in the Trust and
Estate Trade pages, Partnership pages, or UK Property pages
(furnished holiday lettings) as appropriate. If this income does
not arise in the course of a trade, profession or vocation, it should
be included in boxes 9.32 to 9.40. Contact us if you are in any
doubt about this.
●
Other income
boxes 9.32 to 9.40
Keep a record of the separate items of
income, and any relevant expenses relating to each item (see notes
below), in case you are asked for details later. Helpsheet 325
Other taxable income has a Working Sheet that you can use to arrive
at aggregate figures to put in the boxes if the trust or estate had
more than one type of 'other income'. You can only set losses of
the year against certain types of 'other income' - see the note on
losses on page 19 and Helpsheet 325 if you need it. If the trust or
estate only had one type of 'other income' during the year, follow
the instructions below. Otherwise, go to
hmrc.gov.uk/helpsheets/hs325.pdf or ask the Self Assessment
Orderline for Helpsheet 325 Other taxable income and complete the
Working Sheet.
SA950
Trustees
Where a will sets up a continuing trust, either during or at the end
of the administration period, the personal representatives will
distribute the income which arose during the administration to the
trustees of that trust. This income has been taxed in the hands of
the personal representatives. If the trustees of a discretionary or
accumulation trust have received any such income in the year they
should enter:
• dividend type income in boxes 9.15 to 9.17
• interest and other savings type income in boxes 9.12 to 9.14
• all other income in boxes 9.32 to 9.34.
HMRC 12/12
Enter the amount of income after any tax taken off,
and after any allowable expenses or capital allowances for this year.
If overall there was a loss for the year enter '0'. There are notes
below about expenses, losses and some types of income.
box 9.33
Enter the amount of any tax taken off the
payments received.
box 9.34
Enter in box 9.34 the amount of income before any
tax was taken off, but after any allowable expenses or capital
allowances for the year (box 9.32 plus box 9.33). If the result is a
loss, it can be set against income in a future year – see the notes
on 'Losses' on page 19 – and enter it in box 9.37. If you have more
than one source of 'other' income you should deduct any loss
made in the year that can be set off against other types of income
(see Helpsheet 325) and enter the net amount in box 9.34.
Cashbacks
You may have to pay tax if the trust or estate has, as an incentive
to take out a mortgage or to purchase an asset:
• received cash, or
• received an asset, or
• had any liabilities waived or paid for.
You may be taxable on the amount or value of what it received, or
had waived or paid.
The payer of the incentive may be able to tell you whether there
is any tax liability. If not, you should ask us or your tax adviser.
If the amount is liable to Income Tax (which is likely only where
the cashback consists of payments receivable in more than one
year), enter it in box 9.34. (If you are not sure whether the amount
is liable to Income Tax, include it in box 9.34 and give full details
of the cashback in the 'Additional information' box, box 21.11, on
page 12 of the Trust and Estate Tax Return.)
Post cessation and similar business receipts
Include any income received from a business in which the trust’s or
estate's involvement has ceased. If the basis on which the profits of
a business are calculated has changed, include here any receipts
which, as a result of that change, would not otherwise be taken
into account for tax purposes during the life of the business.
Examples include:
• money recovered from a bad debt which had been written off in
the business accounts
• royalties arising after the business ceased from contracts made
before it ceased
• receipts relating to work completed before the basis on which
profits are calculated changed from a cash to an earnings basis.
There are two ways of dealing with this. Either you enter the total
in box 9.34 or, alternatively, you can claim to have the income
taxed as income of the year in which the business ceased. If you
wish to do this do not use box 9.34. Instead, enter the amount
and the year in which the business ceased in the 'Additional
information' box, box 21.11, on page 12 of the Trust and Estate
Tax Return.
If you think you may be entitled to claim relief for post cessation
expenses please contact us.
Where the income relates to a discontinued business, the amount to
be included in boxes 9.32 and 9.34 is net of:
• losses and expenses, not arising from the discontinuance itself,
which would have been allowable had the business continued
• any unused losses and unused capital allowances of the
discontinued business
• any such expenses brought forward from earlier years which have
not previously been relieved against post cessation receipts.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 18
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Where the receipts arise from a change in the basis on which the
profits of a business are calculated, the amount to be included in
boxes 9.32 and 9.34 is net of any expenses not otherwise allowed
which would have been deductible but for the change.
Personal representatives are chargeable at the basic rate on deeply
discounted securities, gilt strips, Accrued Income Scheme profits
and the other types of deemed income listed above.
box 9.37A
Expenses
The amount of taxable income is the gross income the trust or
estate is entitled to (whether or not received) in the tax year minus
allowable expenses incurred in that year. Allowable expenses are
those which:
• had to be spent solely to earn the income
• were not spent for private or personal reasons
• were not spent to buy something which the trust or estate
intends to keep for a while (such as a computer). But you may be
able to claim capital allowances for this expense. Ask us for help,
if you need it.
You cannot set expenses against annual payments.
Please read the notes on 'Post cessation and similar business receipts'
on page 18 of this guide for guidance on expenses which are
allowable in arriving at the taxable amount of receipts from a
discontinued business, or arising from a change in the basis on
which business profits are calculated.
Losses
If the allowable expenses are more than the receipts, the trust or
estate has suffered a loss. Some, but not all, losses can be set against
some types of income from other transactions in the 'other
income' category.
If there is no such income this year, losses can be carried forward
and set against similar income in future years.
You cannot set losses against annual payments.
If you are in any doubt about which losses you can claim or how to
claim them, ask us or your tax adviser.
box 9.35
Enter any unused allowable losses brought forward
from earlier years.
box 9.36
Enter the amount of any loss brought forward which
can be set against the income in box 9.34. Include only the amount
up to the amount of that income. You cannot set losses against all
categories of other income, for example, you cannot set losses
against annual payments – see the notes that follow.
box 9.37
Enter the amount of any loss for the year which you
are claiming to carry forward to a later year.
SA950
■
Deemed income
There are certain items that are treated as income for tax purposes.
These include:
• profits on the disposal of deeply discounted securities
• profits under the Accrued Income Scheme
• disposals of futures and options
• sales of foreign dividend coupons
• chargeable events for employee share ownership trusts
(trustees only)
• offshore income gains
• transactions in deposit rights
• certain transactions in land.
Trustees, other than trustees of unauthorised unit trusts, are taxable
at the trust rate on their deemed income, even if they are not
normally liable at this rate. Trustees of unauthorised unit trusts are
not chargeable at the trust rate on deemed income and should
include deemed income in box 9.34.
HMRC 12/12
Deeply discounted securities
Deeply discounted securities have replaced those types of securities
previously termed deep discount bonds and deep gain securities.
Broadly these are securities where the investor's return is mainly
made up of a discount or premium payable on redemption of the
bond rather than by interest payable over the life of the bond.
The discount or premium is the difference between the price
at which the bond was issued and the amount payable
on redemption.
The discount or premium must be capable of being more than:
• 15% of the redemption price, or, if smaller
• 0.5% of the redemption price for each year of the bond's life
(for example, in the case of a 10-year bond any discount of 5%
or more would mean it was a discounted bond).
A security with an uncertain yield, for example, linked to the Retail
Prices Index, will usually be a deeply discounted security.
A security fully linked to the value of assets which would be
chargeable assets under the Capital Gains Tax rules (for example, a
security whose yield is fully linked to the FTSE index, and gives no
guaranteed minimum return on your investment) will not normally
be a deeply discounted security. If the trust or estate had a deeply
discounted security, you will generally be taxable only when you
dispose of the security in any way or it is redeemed at that time.
You will be taxable on the difference between the amount paid
for the security and the amount received when you redeemed or
sold it. Tax is not deducted from the payment.
Personal representatives and trustees, except trustees of an
unauthorised unit trust, should include the gross amount of the
discount in box 9.37A. Trustees of an unauthorised unit trust
should include that income in box 9.34 instead.
Gilt strips and strips of non-UK government securities
These are deeply discounted securities. In contrast to the usual
rules there is a charge on the discount each year even if the
securities were not disposed of during the year. The discount
charge is worked out by comparing the published market values of
the strips on 5 April with their published market values a year
earlier, or with the price paid for them if bought during the year.
(This is achieved by deeming a disposal of the strips on 5 April and
a reacquisition on 6 April, both the deemed disposal and deemed
reacquisition taking place at their market value on 5 April.) Since
15 January 2004, market value means the published market price.
Personal representatives and trustees, except trustees of an
unauthorised unit trust, should enter the discount at box 9.37A.
Trustees of an unauthorised unit trust should include that income
in box 9.34 instead.
Losses on deeply discounted securities
●
Strips
You cannot claim any relief for a loss on redemption or disposal of a
strip (including a deemed 5 April disposal) to the extent that the
proceeds (or the 5 April market value in the case of a deemed
disposal) are less than your original acquisition cost of the strip.
This applies generally to strips acquired on or after 15 January 2004.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 19
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
●
Other deeply discounted securities
For deeply discounted securities other than strips, you cannot claim
any relief for a loss on redemption or disposal, unless the security
has been held since 26 March 2003 and it was then, or had been,
listed on a recognised stock exchange. If that applies, deduct the
qualifying loss in arriving at the amount to enter in box 9.37A.
Accrued income
Accrued income securities include all interest bearing securities,
including permanent interest bearing shares in a building society,
government loan stock (gilts) and company loan stock, but do not
include shares in a company or National Savings Certificates.
No profit arises and no loss is made for 2012–13 if the nominal
value of all accrued income securities held on disabled persons'
trusts or by a personal representative at any time in 2012–13 or
2011–12 did not exceed £5,000.
You should calculate profits or losses for securities you have bought
or sold or transferred where the next interest payment after your
purchase or sale fell between 6 April 2012 and 5 April 2013.
A profit will arise if the trust or estate purchased securities without
accrued interest (ex-dividend) or sold securities with the accrued
interest (cum-dividend). The profit will be the accrued interest not
received, that is the amount by which the purchase price was
reduced (purchase ex-dividend) or the sale price was increased
(sale cum-dividend).
A loss will be made if the trust or estate purchased securities with
accrued interest (cum-dividend) or sold securities retaining the
right to the next interest payment (ex-dividend). The loss will be
the amount by which the purchase price was increased (purchase
cum-dividend) or the sale price was decreased (sale ex-dividend).
Strictly, you should deal with each kind of security separately. On
each kind of security combine the profits and losses. Where the
profits exceed the losses for a particular kind of security the net
amount is chargeable. The charge is at the trust rate for all trustees,
other than trustees of an unauthorised unit trust, and at the basic
rate for personal representatives. Trustees of an unauthorised unit
trust are chargeable at the basic rate.
Add together all the chargeable amounts and enter the figure in
box 9.37A. Trustees of an unauthorised unit trust should include
the amount in box 9.34.
Where losses exceed profits on a security, the net interest arising on
that security and the tax deducted on it should not be included in
boxes 9.2 and 9.3. Instead you should include them in boxes 9.12
and 9.13. You should enter in box 9.14 the net interest plus the tax
deducted minus the amount of the excess of the losses over
the profits.
If the trust or estate was a partner, it is also chargeable on its
share of any profits on accrued income securities held by the
partnership. Include the amounts in box 9.37A. Both trustees and
personal representatives should use their share of any excess losses
to reduce income in box 9.14.
box 9.38
Personal representatives and trustees, other than
trustees of an unauthorised unit trust, should include the other
types of deemed income listed at the beginning of this section
('Deemed income') on page 19, in box 9.38. Trustees of an
unauthorised unit trust should include them in box 9.34.
SA950
Income from offshore funds
You may need to make an entry in this box if the trust or estate has
disposed of an interest in an offshore fund. The rules relating to this
can be quite complex; HM Revenue & Customs has published
guidance in its Offshore Funds Manual at
hmrc.gov.uk/manuals/ofmanual and in the Savings and
Investments Manual at hmrc.gov.uk/manuals/saimmanual or
alternatively you should ask your tax adviser. The following is only a
general overview.
HMRC 12/12
The term 'offshore fund' is defined in UK tax legislation; broadly
such a fund is an investment scheme of which the trustees or
operators are not resident in the UK (for example, unit trusts
operated under Jersey laws and Belgian SICAVs are offshore funds).
Other than 'open-ended' investment companies, non-resident
companies generally are not offshore funds but you should check
this with the fund manager or your tax adviser.
In certain circumstances, gains on disposals of holdings in offshore
funds are charged to tax as income instead of being taxed as
capital gains. If that is the case then you should enter the
un-indexed gain on disposal of the interest in the offshore fund in
box 9.38. Where that is not the case, then any gain or loss on
disposal should be returned on the Trust and Estate Capital Gains
pages and not in box 9.38. If this applies, you can get copies of the
Trust and Estate Capital Gains pages from
hmrc.gov.uk/forms/sa905.pdf or phone the Self Assessment
Orderline.
You should return any income received by the trust or estate from
the offshore fund on Foreign page TF2 in box 4.5 or on page 4 of
the Trust and Estate Tax Return, as appropriate. The voucher or
fund manager will give relevant details about the type of income
arising.
Company purchase of its own shares
boxes 9.39 and 9.40
Qualifying distributions where a company
buys its own shares are taxable on the trustees at the dividend trust
rate. They are treated as dividends and the associated tax credit is
not payable.
Enter in box 9.39 the amount of any tax credit relating to the
payment. The amount to be entered is 10% of the figure in
box 9.40.
Enter in box 9.40 the total taxable amount. You calculate this by
deducting from the actual (that is, the net) deemed dividend the
amount of the deductible trust management expenses and
multiplying the result by 10/9.
Please note that if the amount of the deemed dividend exceeds the
total amount of trust management expenses paid, the amount of
deductible management expenses to be entered in box 13.19 will
be nil.
If the trust is non-resident in the UK for Income Tax purposes,
expenses which are attributable to sources of income not liable to
UK Income Tax cannot be deducted from the income from
companies buying their own shares. The amount of expenses to be
deducted will be the total trust management expenses paid
multiplied by the total taxable UK income divided by the total
income of the trust.
Q9A
Standard rate band
The standard rate band applies only to trustees.
Personal representatives should go to Question 10A.
Trustees with any income chargeable at the special trust rate
must complete box 9A.1
The first £1,000 of income which would otherwise be chargeable at
the special trust rates is instead chargeable at the basic or dividend
rate, depending on the nature of the income. This first £1,000 of
income is known as the standard rate band. If you have ticked
box 8.4 or 8.15 your income will not normally be liable at the
special trust rates but there are occasions when they will apply.
This will happen if you receive certain sums that are capital in
trust law, for example, gains on life insurance policies and certain
lease premiums, but which are treated as income for Income Tax
purposes (see the notes for 'Deemed income' on page 19).
These sums are chargeable on all trustees, except trustees of an
unauthorised unit trust, at the special trust rates.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 20
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
In box 9A.1 enter the amount of standard rate band to which you
are entitled. This cannot be more than £1,000 but it will be
reduced if any settlor of the trust or settlement has made more
than one trust or settlement, which are in existence during any part
of the period covered by this tax return. Where this is the case the
£1,000 is divided by the number of settlements made by the settlor
though it cannot be reduced below £200. So, if a settlor has made:
• two trusts or settlements, each will have a standard rate band
of £500
• three trusts or settlements, each will have a standard rate band
of £334
• four trusts or settlements, each will have a standard rate band
of £250
• five or more trusts or settlements, each will have a standard rate
band of £200.
Where there is more than one settlor, the calculation of the
standard rate band is made by reference to the settlor who has
made the most trusts or settlements.
The standard rate band applies after the deduction of allowable
expenses – see Question 13. The standard rate band is applied in
the following sequence to the different types of income:
• first to non-dividend-type income (rent, business income, savings)
• then to dividend-type income.
Q10A
Do you want to claim any reliefs or
have you made any annual payments?
Otherwise, tick the 'Yes' box and fill in boxes 10.1A to 10.4A
and/or 10.1B to 10.1C as appropriate, using the notes that
follow.
Trustees of an unauthorised unit trust who made, or are treated
as having made, annual payments should tick the 'Yes' box and
complete boxes 10.2A to 10.4A, following the notes.
Personal representatives: interest on loans and payments
under alternative finance arrangements made to pay
Inheritance Tax
box 10.1A
Personal representatives are chargeable on the whole
of the income that arises on an estate after the date of death.
They are not entitled to a deduction for expenses. But they can
claim relief for interest on loans and alternative finance
arrangements taken out to pay the Inheritance Tax due on the
estate if they are obliged to pay this tax when the Inheritance Tax
account is delivered. The relief is limited to interest paid for a
maximum 12-month period from the date the loan was made.
Enter in box 10.1A the amount of interest paid or alternative finance
payments; if you need help ask us or your tax adviser.
●
Please provide the calculation of the 'uncredited surplus' in the
'Additional information' box, box 21.11, on page 12 of the Trust and
Estate Tax Return. Where relief is given for an uncredited surplus the
amounts to be returned in boxes 10.2A to 10.4A are those after the
relief has been given.
●
Vulnerable beneficiaries
box 10.1B If you have ticked the 'Yes' box at 10B, enter in
box 10.1B the amount of relief claimed against Income Tax only.
You should enter relief claimed against Capital Gains Tax in
box 5.6E of the Trust and Estate Capital Gains pages. You can
only make a claim if you have made a valid election (see the notes
on boxes 8.17 and 8.18 on page 12).
A tick in box 8.18 applies the special treatment to both Income Tax
and Capital Gains Tax, if any.
●
If you do not tick the 'Yes' box, go to Question 11.
●
into charge, then again the trustees are taxable on the excess.
In such cases, however, the trustees may be entitled to relief for
an 'uncredited surplus'. The amount of any such relief is deductible
in calculating the excess on which the trustees are taxable. This
deduction is limited to the amount of the excess for the year.
Employee Benefit Settlement
box 10.1C
‘
‘Discretionary employment income payment’ means
a payment made in the exercise of a discretion, out of income by a
UK resident employee benefit settlement, to a beneficiary where
the payment is taxed as employment income of the beneficiary.
An employee benefit settlement is one where the trusts on which
the settled property is held do not permit the settled property to be
applied otherwise than:
• for the benefit of persons of one or more relevant classes, or
• for the benefit of such persons and for charitable purposes.
'Relevant class' means a class defined by reference to one or more
of the following:
• employment in a particular trade or profession,
• employment by, or holding office with, a body carrying on a
trade, profession or undertaking, or
• marriage to or civil partnership with, or relationship to, or
dependence on, persons of a class mentioned in the two
bullets above.
The amount of relief is the lesser of:
• the discretionary employment income payments made in the
year multiplied by the trust rate, and
• the amount of the tax pool in box T9.19.
If any compensation payments were made under ESC A68 for years
up to and including 2009–10 the tax pool brought forward, shown
in T9.19, must be reduced to reflect all previous compensation
payments under ESC A68.
Q11
Trustees
boxes 10.2A to 10.4A
Enter here the amount of any annuity
or other annual sum payable out of the trust's income. If the annual
payments (box 10.4A) exceed the trust income brought into
charge, the trustees are taxable on the excess. This is likely to apply
to charitable trusts that make such payments if their income is
otherwise exempt from tax.
SA950
Relief for patent royalties is available for payments made before
5 December 2012. The relief was withdrawn for payments made on
or after that date. You should make a note of any amounts of patent
royalties paid on or after 5 December 2012 in the Additional
information box, box 21.11 of the Trust and Estate Tax Return.
If unauthorised unit trusts have an excess of annual payments, or
amounts treated as annual payments, over trust income brought
HMRC 12/12
Were any annual payments made out
of capital or out of income not
brought into charge to Income Tax?
If you do not tick the 'Yes' box, go to Question 12.
boxes 11.1 to 11.3
For example, if the trustees have received
enhanced stock dividends and made compensatory payment out of
capital to beneficiaries, enter the amount of the payment made in
box 11.1, the tax taken off in box 11.2 and the gross amount in
box 11.3.
Q12
Have any assets or funds been put
into the trust in the year 2012–13?
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 21
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
boxes 12.1 to 12.9
Use boxes 12.1, 12.4 and 12.7 to provide
the name and address of any person who made an addition to the
trust during the year to 5 April 2013. If the trust was first created
after 5 April 2012, please include details of the original settlement.
Describe the assets in boxes 12.2, 12.5 and 12.8, for example,
shares, cash, etc. Enter in boxes 12.3, 12.6 and 12.9 the value of
the asset at the date it was added to the trust/settlement funds.
Q13
Is any part of the trust income not
liable to tax at the special trust rates?
You should tick the box only if there is trust income to
which beneficiaries have an entitlement or which is applied
for specific purposes. If the only income which is not liable
at the special trust rates is the income within the standard
rate band, do not tick the box. The standard rate band is
the first £1,000 of income which would otherwise be
chargeable at the special trust rates but which is instead
taxable at the basic or dividend rates, depending on the
nature of the income.
●
Trust management expenses
As you complete the Trust and Estate Tax Return, you may find
that a proportion of income is not taxable at the special trust rates
and that you have more than one type of income against which
you can allocate expenses.
For example, some of the income may not be the subject of any
discretion or may be allocated for specific purposes and the
income may be of different types. When this happens you will
have to apportion the expenses (between income chargeable at
the special trust rates and that which is not so chargeable) and
then allocate expenses against different types of income in the
order indicated – see Example 1 below.
Example 1
The total trust income is £5,000, comprising rental income
of £4,000 and interest of £800 (basic rate tax of £200 has been
deducted). £500 is allocated for specific purposes. You pay
allowable expenses of £500. One half of the income is taxable at
the special trust rates. You can calculate the amount of income
taxable at the special trust rates as follows:
Rent Interest
Income
minus
Income allocated for specific purposes
(apportioned at a ratio of 4:1)
From which income may expenses be deducted?
If you are liable at the special trust rates, you can deduct allowable
trust management expenses in arriving at the amount of income
on which you are taxable at those rates. You cannot deduct trust
management expenses in arriving at the amount of income taxable
only at the basic rate (20%) or dividend rate (10%).
You can only deduct expenses that relate to that part of the income
which is taxable at the special trust rates. For example, you may be
the trustee of a trust where one half of the income is taxable at the
special trust rates and one half is not. If the total income is £5,000
and the allowable expenses are £1,000, you can deduct only £500
expenses as the other £500 relates to income which is not taxable
at the special trust rates.
minus
Income not taxable at the
special trust rates (1/2)
Expenses
4,000
1,000
(400)
3,600
(100)
£900
(1,800)
1,800
(450)
450
500
minus
Apportioned to income allocated
for specific purposes
500
x
500
5,000
=
50
450
What expenses are deductible for trustees?
Trustees cannot deduct management expenses against income
taxable only at the dividend rate (10%) or basic rate (20%).
You can deduct the expenses of managing the trust from trust
income chargeable at the special trust rates, provided the expenses
are under general trust law properly chargeable to income. To be
properly chargeable to income, the expenses must be incurred
exclusively for the benefit of the income beneficiaries.
You cannot deduct expenses that are incurred for the benefit of the
whole estate, for example, legal expenses, the cost of investment
advice or of changing trust investments. Under trust law such
expenses are properly chargeable to capital.
You can find more guidance on what are allowable trust
management expenses for trustees, in Helpsheet 392 Trust
Management Expenses (TMEs). Go to
hmrc.gov.uk/helpsheets/hs392.pdf.
You must deduct any allowable expenses against income in the
following order:
1 against income that carries a non-payable ordinary dividend rate
tax credit or notional tax credit of 10%, for example, dividends
or stock dividends from UK companies, then
2 any excess against other dividend income not within 1, then
3 any excess against savings income, finally
SA950
450
x
2,250
4,500
=
225
Allowable against income taxable at
the special trust rates
225
x
100
80
=
Amount taxable at special trust rates
(281)
1,800
169
The standard rate then applies: £1,000 is taxable at 20%, and
the balance £969 is taxable at the special trust rate of 50%
Trust expenses and beneficiary's income – bare trust
How expenses are deducted
4 any excess against other income.
The standard rate band applies after the deduction of
allowable expenses.
HMRC 12/12
minus
Apportioned to income not taxable
at the special trust rates
If the beneficiary has an absolute interest in both capital and
income, trust management expenses cannot be deducted in
arriving at the measure of his or her income.
Trust expenses and beneficiary's income – interest in possession trust
If the beneficiary has an interest in income only, trust management
expenses are taken into consideration in arriving at the measure of
the beneficiary's income – see Example 2 on the next page.
You can find more guidance on what are allowable trust
management expenses for beneficiaries, in Helpsheet 392
Trust Management Expenses (TMEs). Go to
hmrc.gov.uk/helpsheets/hs392.pdf
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 22
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Example 2
You are trustee of a trust in which the beneficiary has a life
interest (the beneficiary is called a 'life tenant'). In 2012–13 you
receive rental income of £1,500 and bank interest of £800
(basic rate tax of £200 has been deducted) and pay allowable
expenses of £250.
Your gross income
Tax due from you
Net income
Rent
Interest
1,500
300
1,200
1,000
200
800
You will receive credit for the tax deducted at source from the
bank interest (£200) so you will have to pay £300 in tax.
The life tenant's income for tax purposes will be:
Net income (as above)
Rent
Interest
1,200
800
1,200
(250)
550
minus
Management expenses
Grossed
(@20%)
1,500
(@20%)
687
boxes 13.7 to 13.18
If you have ticked the 'Yes' box in
Question 13, you will need to complete boxes 13.7 to 13.18.
The following notes and the Working Sheet on page 24 will help
you to complete these boxes.
boxes 13.7 to 13.12
You should complete these boxes if the
terms of the trust are such that some part of the income is neither
to be accumulated nor is payable at the discretion of any person.
For example, a beneficiary may have an irrevocable title to part of
the capital and income or may be entitled to part of the income as
it arises.
You should normally apportion each type of income that falls
under this heading. You will also need to apportion any allowable
trust management expenses. However, if such a beneficiary's share
of the income is not, under the terms of the trust or because the
trustees have exercised their power of appropriation, measured as a
percentage of each type of income, it is the income to which they
are entitled and the trust management expenses relating to that
income which should be entered in these boxes.
In boxes G1 and G5 enter the amount of income (not subject to
trustees' discretion) net of tax or tax credits but without deducting
trust management expenses.
In boxes G2 and G6 enter the amount of expenses relevant to each
source of income to which the beneficiary is entitled. You must set
the expenses as far as possible against the net income in the order
set out under the heading 'How expenses are deducted' on
page 22.
In boxes G3 and G7 enter the amount of tax due on each source
of income and in boxes G4 and G8 enter the gross amount of
income (that is, G1 plus G3, G5 plus G7) relevant to each source of
income to which the beneficiary is entitled.
Enter similar details in boxes G9 to G16 for any other beneficiary
who is entitled to the income of the trust and repeat the process
at boxes G17 to G24 for any third beneficiary.
SA950
For each of the two categories of income, total the amounts of
expenses and the amount of gross income for all the beneficiaries
in boxes G25 to G28 and copy the amounts to the appropriate
boxes 13.7 to 13.12 on the Trust and Estate Tax Return, as directed
on the Working Sheet.
boxes 13.13 to 13.18
If the will or settlement directs that
income is to be applied for specific purposes, for example, the
redemption of a lease or mortgage, you can deduct it in arriving at
the amount of income which is to be taxed at more than the basic
rate. Income which is applied for the maintenance, etc. of
beneficiaries should not be included; nor should income used
to meet your expenses in collecting income or administering
the trust.
In boxes G29 and G33 enter the amount of net income allocated to
specific purposes relevant to each source shown.
In boxes G30 and G34 enter the amount of expenses relevant to
each source of income allocated to specific purposes. You must set
the expenses against the net income in the order set out under the
heading 'How expenses are deducted' on page 22.
In boxes G31 and G35 enter the amount of tax due on each source
of income.
In boxes G32 and G36 enter the gross amount of income (that is,
G29 plus G31, G33 plus G35) relevant to each source of income.
Copy the amounts in G30, G32, G34 and G36 to boxes 13.13 to
13.18 on the Trust and Estate Tax Return, as directed on the
Working Sheet.
box 13.19
Enter the total amount of deductible trust
management expenses – see the notes on 'What expenses are
deductible for trustees?' on page 22. Do not include expenses which
have been taken into account in arriving at the amount of taxable
income from companies purchasing their own shares
(see the notes to boxes 9.39 and 9.40 on page 20).
If you submit a provisional figure which is either inaccurate, or
unnecessary, you may be liable to a penalty.
box 13.21
If the trust is not resident in the UK for Income Tax
purposes enter in box 13.21 the amount of income not liable to UK
Income Tax and which is not therefore included elsewhere in this
Trust and Estate Tax Return.
Q13A
Is this a settlor-interested trust
where part of the income is not
settlor-interested?
You should tick this box where there is trust income
which is liable at the special rates but where some of
the income is settlor-interested and some is not.
box 13A.1
You should enter an amount in this box only if you
have ticked boxes 8.12 and 8.16 and part of the trust is not
settlor-interested. The normal tax pool arrangements do not apply
where income of the trust is treated as that of the settlor. So where
part of the trust is settlor-interested and part not, enter in this box
your calculation of the amount of the tax pool that relates to the
part of the trust which is not settlor-interested. Similarly, a trust may
become or cease to be settlor-interested part way through a tax
year, for example, when the settlor marries a beneficiary or the
settlor dies. Where this happens the tax paid by the trustees for
income earned arising when the trust is not settlor-interested, enters
the tax pool. Tax paid by the trustees on income arising whilst the
trust is settlor-interested is still available to cover the settlor’s liability.
An apportionment on a time basis is acceptable.
(If there are more than three beneficiaries, photocopy this section
of the Working Sheet but remember to include totals in boxes G25
to G28.)
HMRC 12/12
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 23
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Working Sheet for Question 13
Income of beneficiary(ies) not subject to trustees' discretion
If there are more than three beneficiaries, photocopy this section and add the totals in boxes G25 to G28 below.
Share of income (% or fraction if appropriate)
Beneficiary 1
Net income
Share of expenses
Tax
G1
£
G2
£
G3
£
G4
£
Income charged at 20% rate
G5
£
G6
£
G7
£
G8
£
Beneficiary 2
Share of income (% or fraction if appropriate)
Net income
Income charged at 10% rate
Income charged at 20% rate
Share of expenses
Tax
Gross income
£
G10 £
G11 £
G12 £
G13 £
G14 £
G15 £
G16 £
G9
Beneficiary 3
Share of income (% or fraction if appropriate)
Net income
Share of expenses
Tax
Gross income
Income charged at 10% rate
G17 £
G18 £
G19 £
G20 £
Income charged at 20% rate
G21 £
G22 £
G23 £
G24 £
Gross income
Share of expenses
●
Gross income
Income charged at 10% rate
Income charged at 10% rate
Total G2, G10 + G18
G25 £
Total G4, G12 + G20
G26 £
copy to 13.8
●
Income charged at 20% rate
Total G6, G14 + G22
G27 £
copy to 13.7
Total G8, G16 + G24
G28 £
copy to 13.12
copy to 13.11
Income allocated to specific purposes
Net income
●
Income charged at 10% rate
G29 £
Share of expenses
G30 £
Tax
G31 £
Gross income
G32 £
copy to 13.14
●
Income charged at 20% rate
G33 £
G34 £
G35 £
SA950
copy to 13.18
HMRC 12/12
copy to 13.13
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 24
G36 £
copy to 13.17
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
Q14
Have discretionary payments of
income been made to beneficiaries?
box 14.15
Enter the amount, if any, of unused tax pool
brought forward from last year.
Q15
If you tick the ‘Yes’ box, fill in boxes 14.1 to 14.14 as
appropriate. If not applicable, fill in box 14.15 only.
Trustees of Heritage Maintenance Funds: the boxes in
Question 14 of the return are only for discretionary
payments of pure income profit to individual beneficiaries,
which would not normally feature in this type of trust.
Do not complete these boxes for expenditure on heritage
property by you or even by way of payment to or
reimbursement of a third party who is an individual. If you
enter such figures here they may result in an incorrect tax
charge on you.
If you do not tick the 'Yes' box, go to Question 15A.
box 15.1
In this context capital payments include the transfer
of assets as well as payments of cash. A relevant child is a minor
who has never been married or in a civil partnership.
Enter in box 15.1 the total amount of payments made in the year.
boxes 14.1 to 14.14
Enter details of all net payments made
during the year in exercise of your or any other person's discretion
which are income of the beneficiaries. Payments out of trust
income are always the income of the beneficiaries. Payments out of
trust capital including out of accumulated income or deemed
income are not usually regarded as the income of a beneficiary
irrespective of the purpose for which they are made and should not
normally be included.
Exceptionally, payments out of capital are treated as the income of
the beneficiary where, by the terms of the trust instrument,
payments out of capital must be made, or may be made, in order
to supplement income. For example, the trustees may use or have
to use capital to make income up to a fixed amount or a certain
defined level.
Payment is regarded as taking place when a beneficiary is legally
entitled to ask for money to be paid over, for example, when it
becomes irrevocably their property following the trustees'
resolution to allocate or appropriate it to them.
Payments by trustees of settlor-interested trusts made at their or
any other person's discretion and where the underlying income is
chargeable on the settlor, are not to be included in boxes 14.1
to 14.14. Instead, give details of such payments in the
'Additional information' box, box 21.11. These details must include,
for each payment, the actual amount paid by the trustees to each
beneficiary and the name of that beneficiary. Such payments are
not included in the calculation of the tax pool. A settlor-interested
trust is one where the settlor has retained an interest.
You can find more information in Helpsheet 270 Trusts and
settlements – income treated as the settlor's. Go to
hmrc.gov.uk/helpsheets/hs270.pdf
SA950
Where only part of the income arising to the trustees is chargeable
on the settlor, then part of the payment will need to be shown in
box 21.11 and part in boxes 14.1 to 14.14. The amount that goes
in box 21.11 is the proportion of the discretionary payment which
corresponds to the proportion of income chargeable on the settlor
to the total income of the trustees. The rest of the payment is
shown in boxes 14.1 to 14.14 as normal. For example, if the
trustees make discretionary payments to the beneficiaries totalling
£2,000 and their total income is £5,000, of which £3,000 is
chargeable on the settlor, the amount to be shown in box 21.11 is
£1,200 (2,000 x 3,000/5,000). The balance of £800 is shown in
boxes 14.1 to 14.14.
Payments by trustees of employment related trusts made at their,
or any other person's, discretion and which are taxable as
employment income of the beneficiary are not to be included in
boxes 14.1 to 14.14 and such payments do not reflect in the
calculation of the tax pool. If there is insufficient space on page 8
of the Trust and Estate Tax Return to give full details of payments,
please attach a separate sheet giving the additional information in
the same format as Question 14.
HMRC 12/12
Have the trustees made any capital
payments to, or for the benefit of,
relevant children of the settlor during
the settlor's lifetime?
Q15A
Were there capital transactions
between the trustees and the settlors?
If you do not tick the 'Yes' box, go to Question 16.
boxes 15A.1 to 15A.12
There may be a tax charge on the
settlor where capital sums are paid to them by the trustees either
directly or through a company connected with the settlor.
A capital sum is defined as:
• any sum paid by way of loan or repayment of loan
• any other sum paid otherwise than as income being a
sum which is not paid for full consideration in money or
money's worth.
A company is deemed to be connected with a settlement if it is:
(a) a close company (or only not a close company because it is not
resident in the United Kingdom) and the participators include
the trustees of the settlement
(b) controlled by a company falling within paragraph (a) above.
A
•
•
•
•
capital sum is deemed to have been paid to the settlor if it is:
paid to them
paid to their spouse or civil partner
paid to a third party at the settlor's direction
paid to a third party by virtue of an assignment by the settlor of
their right to receive it
• otherwise paid to or applied for the benefit of the settlor.
Enter in boxes 15A.1 to 15A.12 details of any capital sums paid to
the settlor or to a company connected with the settlement. If any
capital sum has been paid to a company connected with the
settlement, enter the name(s) of the company(ies) and its (their)
registered office(s) in the appropriate box. If more than one sum
has been paid, give separate details for each one.
Q16
Has the trust at any time been
non-resident or received any capital
from another trust which is, or at any
time has been, non-resident?
If you do not tick the 'Yes' box, go to Question 17.
boxes 16.1 to 16.23
There may be a tax charge on
beneficiaries if they receive capital or other benefits from a trust
which has at any time been treated as non-resident in the UK for
tax purposes or which has received capital from another trust which
is, or at any time has been, treated as non-resident.
For the purposes of deciding if you need an entry in box 16.1:
• a capital payment means
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 25
continued over
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
–
•
•
any payment made which is not chargeable to Income Tax
on the beneficiary or, in the case of a beneficiary who is
neither resident nor ordinarily resident in the United
Kingdom, any payment received otherwise than as income
– the transfer of an asset
– the value of any settled property at the time when the
beneficiary becomes absolutely entitled, as against the
trustees, to it.
But it does not include a payment under a transaction entered
into at arm's length.
a benefit has its ordinary meaning and will, for example, include
– a loan to a beneficiary either interest-free or at a rate
below a normal commercial rate
– allowing a beneficiary to live rent-free or at a rent below
the normal market rent in a property owned by the trust
– allowing a beneficiary the use of a trust asset without
payment at a market rate
we will regard you as having made a payment to the
beneficiary if
– they received it from you directly or indirectly
–
–
you apply it directly or indirectly in payment of any debt of
theirs or otherwise for their benefit
you pay it to a third person at the beneficiary's direction.
Q17
Do you want to calculate the tax?
If you tick the 'Yes' box, please do your calculation
and fill in boxes 17.1 to 17.10. If you do not tick the
'Yes' box, go to Question 18.
Calculating your tax is optional but if you do it, we need this
information so that we can check that you have got it right.
The Trust and Estate Tax Calculation Guide explains what to put in
the boxes.
If the trust or estate has paid too much
tax do you want to claim a repayment?
Q18
If you do not tick the 'Yes' box, go to Question 19.
If you tick the 'Yes' box to claim a repayment, fill in
boxes 18.1 to 18.12 as appropriate.
Please note that if you have an amount to pay that is due in the
near future (usually within 45 days) then we will generally set off
any repayment against this liability. Also, we would prefer not to
make repayments of small amounts, because of administrative
costs. So if the overpaid tax is below £10 we will normally set it
against your next tax bill. But if you do not agree with these
set-offs, please contact us.
Please note that this repayment may be based on figures included
in a claim or tax return that has not been checked. This repayment
is not confirmation that the figures submitted are correct and
complete. If, at a later date, the claim or return is found to be
incorrect, you will have to return any over-repayment to us.
SA950
boxes 18.1 to 18.12
If you tick box 18.1 you will receive
repayment direct into your bank or building society. Fill in
boxes 18.3 to 18.7 with details of your account. If you do not have
a bank or building society account, tick box 18.8A. This year we
can send a cheque to the address on page 1. However following
the Payment Council’s plan to close the UK cheque clearing system
in 2018, HMRC will make changes to future Self Assessment
returns, moving away from repayment by payable order. Electronic
methods of payment have the benefit of being quicker, more
secure and more cost effective than cheques.
HMRC 12/12
Tick box 18.2 if you want the repayment sent direct to your
nominee's bank or building society account. Fill in boxes 18.3
to 18.7 to give details of that account. Also, fill in boxes 18.10
and 18.11 to give details of your nominee. You must sign
box 18.12. If your nominee is your adviser tick box 18.9A.
Please note that we reserve the right not to make a repayment to
your nominee.
.
Q19
Trustee or personal representative
details
boxes 19.1 to 19.4
Please enter your, or your adviser's,
phone number in the appropriate box. Please include the area
code. (If you give your adviser's number please also give their name
and address in box 19.3.)
Q20
Have there been any changes to the
names and addresses of the trustees
or personal representatives?
Give the names and addresses of all new and retiring trustees or
personal representatives. If any of the new or retiring trustees are
not resident in the UK, please also give the date of their
appointment or retirement in the 'Additional information' box,
box 21.11, on page 12 of the Trust and Estate Tax Return.
Give details of any change of addresses of existing trustees or
personal representatives in boxes 20.9 to 20.12.
Q21
Other information
box 21.1
If you are filling in this Trust and Estate Tax Return as
a personal representative, please enter the date of death of the
deceased in box 21.1.
box 21.2
If the administration period ceased in the year to
5 April 2013 enter the date of cessation in box 21.2.
box 21.3
If the administration period ceased in the year to
5 April 2013 and there is a trust established by the deceased’s will,
or the rules of intestacy that apply in England and Wales, please tick
box 21.3. For more information on new trusts go to
hmrc.gov.uk/trusts/intro/new-trust.htm
box 21.4
If you are a trustee and the trust was terminated in
the year to 5 April 2013 please enter the date of termination in
box 21.4 and, in the 'Additional information' box, box 21.11, the
reason for termination.
Provisional figures
box 21.5
Do not delay sending the Trust and Estate Tax Return
just because you do not have all the information you need. You
must do your best to get the information, but if you cannot provide
final figures by the time you need to send the Trust and Estate Tax
Return, then provide provisional amounts.
Tick box 21.5 and say in the 'Additional information' box,
box 21.11, which figures are provisional (refer to appropriate box
numbers in the Trust and Estate Tax Return).
It would also help if you say in box 21.11:
• why you could not give final figures, and
• an approximate date by which you expect to provide your
final figures.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 26
How to fill in pages 3 to 12 of the Trust and Estate Tax Return – continued
If you use provisional figures you must have taken all reasonable
steps to get the final figures, and make sure that they are sent as
soon as they are available. You could be charged a penalty if you
did not have a good reason for using provisional figures or you did
not take sufficient care to calculate the provisional figures in a
reasonable amount. We would not regard pressure of work either
on you or your tax adviser, or the complexity of the trust's or
estate's affairs, as reasons for accepting provisional figures.
You must make sure that any provisional figures you do include are
reasonable and take account of all the information available to you.
If you submit a provisional figure which is either inaccurate, or
unnecessary, you may be liable to a penalty.
Estimates (including valuations)
In some situations you may need to provide an estimated figure or
valuation which you do not intend to amend at a later date.
Broadly this will be the case where:
• a valuation is needed (for example, of an asset at a certain date
for the purposes of calculating Capital Gains Tax liability), or
• there is inadequate information to allow you to arrive at a
reliable figure (for example, where the records concerned have
been lost or destroyed), or
• while there is inadequate information to arrive at a precise
figure, a reliable estimate can be made.
You should identify any valuations you have used, either by ticking
the appropriate box in the Trust and Estate Tax Return, where there
is one, and providing the details which the notes ask for, or by
identifying the figure in the 'Additional information' box,
box 21.11, on page 12 of the Trust and Estate Tax Return, and
giving details of the valuation. Do not tick box 21.5.
You should also identify any figures in your Trust and Estate Tax
Return which may not be reliable; where appropriate, explain how
you have arrived at the figure. But if you are including an estimate
which, while not a precise figure, is sufficiently reliable to allow you
to make an accurate Trust and Estate Tax Return, there is no need
to make specific reference to it.
box 21.6
Enter the amount of any 2012–13 tax refunded by
us, or, in the case of personal representatives, the Jobcentre Plus,
(in Northern Ireland, the Social Security Agency).
Disclosed tax avoidance schemes
box 21.7
Enter in box 21.7 the scheme reference number
(SRN) of any scheme or arrangement the trust or estate has used
to obtain a tax or National Insurance contributions advantage.
In most cases you will have received the SRN from the scheme
promoter, but in some cases you may have received the SRN from
HM Revenue & Customs.
SA950
Advantage here means:
• relief, or increased relief, from, or
• repayment, or increased repayment of, or
• the avoidance or reduction of a charge to, or
• the avoidance of an assessment, or possible assessment, to, or
• the deferral of any payment of or the advancement of any
repayment of, or
• the avoidance of any obligation to deduct or account for
Income Tax, Capital Gains Tax or National Insurance contributions.
If you are an employer and the notifiable arrangements concerned
are arrangements connected with employment, you should not enter
the SRN in this return. SRNs for employment products should be
notified separately using form AAG4 Disclosure of avoidance scheme.
If you were party to more than three schemes, details of additional
schemes must be reported on form AAG4. For form AAG4 go to
hmrc.gov.uk/aiu/form-aag4.htm or phone our Anti-Avoidance
Group on 020 7438 6733. If you fail to report the SRN for a scheme
or arrangement, you will be liable to a penalty.
HMRC 12/12
box 21.8
Enter in box 21.8 the year in which the expected tax
advantage first arises. This may be the year to 5 April 2013 or a
future year. It may be an earlier year if this is the first time you have
reported the SRN. Even if you have reported the SRN in a previous
return, you must continue to report it until there is no longer a tax
advantage (for example, until losses produced by the scheme have
been used up).
For more information on the rules for disclosure of tax avoidance
schemes and arrangements go to hmrc.gov.uk/aiu/guidance.htm
Business Premises Renovation Allowance (BPRA)
The BPRA scheme took effect from 11 April 2007. From that date,
until 5 April 2017, if you carry out conversion, renovation or repairs
to unused and certain qualifying business premises which brings
them back into business use, you are entitled to claim a 100%
allowance against the costs incurred, subject to the following rules.
To qualify for BPRA, premises must:
• not have been used for at least one year before the works
began, and
• have last been used for the purpose of a trade, profession or
vocation or as an office or offices
• be in an Assisted Area, that is an area which is considered to be
disadvantaged and eligible for regional aid. The whole of
Northern Ireland qualifies as an Assisted Area and to see whether
an area in England, Wales and Scotland qualifies, go to
bis.gov.uk/analysis/statistics/sub-national-statistics/
assisted-area-look-up
• be available for business or commercial use after the works are
complete (but must not be used for farming, fisheries and
aquaculture, the manufacture of substitute milk products or
synthetic fibres, shipbuilding, steel or coal industries or, from
11 April 2012, a business in difficulty or subject to an
outstanding recovery order).
BPRA cannot be claimed:
• if the renovation expenditure has been incurred on any
residential property, or
• on the costs of acquiring the land, extending the business
premises, or developing land next to the business premises.
From 11 April 2012 there is a cap of £20 million on qualifying
expenditure per single project.
For more information about BPRA and the conditions you must
satisfy to claim the allowance, go to
hmrc.gov.uk/manuals/camanual/CA45100.htm
For BPRA balancing charges
To qualify for BPRA, premises must be held for at least seven years
from the date the premises were first used or were suitable for
letting. If within that period:
• the premises are sold, either freehold or by a long lease of
21 years, or
• cease to be used for business activities, or
• the premises are demolished or destroyed, or
• the person who incurred the renovation costs dies
the allowance must be repaid. This is done by means of an
adjustment known as a balancing charge. Enter in box 21.10
the amount of BPRA which you have previously claimed
on the premises.
boxes 21.9 and 21.10
Extract from boxes 1.20 and 3.35,
and boxes 1.21 and 3.33, amounts that relate to any BPRA claims
or balancing charges. Enter claims to the BPRA in box 21.9 and the
balancing charges in box 21.10.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 27
Notes on paying your tax
begin on page 29
Notes
SA950
Description
Totals
HMRC 12/12
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 28
Paying your tax
Q22
If you have asked us to work out your tax, we will tell you how
much to pay on account.
Declaration
Tick the boxes to show which pages of the Trust and
Estate Tax Return you have filled in. (Make sure you
send back any loose supplementary pages.)
If you have filled in the Trust and Estate Tax Return
Sign and date the form in box 22.1.
Please print your name in box 22.2 and enter the capacity in which
you are signing in box 22.3.
If someone else has filled in the Trust and Estate Tax Return
for you
If someone else has filled in the Trust and Estate Tax Return for you,
acting on your behalf, you must still sign the tax return yourself to
confirm to us that, to the best of your knowledge and belief, it is
correct and complete. This applies whether you have paid for the
services of an accountant or other tax practitioner, or have had
anyone else to help you.
You should always allow sufficient time for checking and signing
the tax return that has been completed by someone on your behalf
(particularly if you are likely to be abroad near the deadline for
sending the form back to us). Failure to make appropriate
arrangements could mean that you miss the deadline and are
charged penalties.
and interest.
■
Your Statement of Account
If we receive the completed paper Trust and Estate Tax Return
by 31 October 2013, we will send you a statement showing how
much tax the trust or estate owes us, or we owe the trust or
estate, before any final payment is due by 31 January 2014. It will
also explain how to pay.
If we receive the completed paper Trust and Estate Tax Return
after 31 October 2013, we cannot guarantee to process it in time
to let you know how much to pay by 31 January 2014. This might
mean that you have to estimate how much to pay.
We will send you a payslip with either a statement or a reminder.
If you pay too little, you will have to pay interest (and perhaps a
late payment penalty). If you pay too much and have claimed a
repayment, we will repay it with any interest due. If you do not claim
a repayment we will set the amount due, plus any interest, against
your next tax bill.
■
If you make payments on account
If you needed to make payments on account for the year to
5 April 2013, we will already have sent you a statement of the first
payment on account due by 31 January 2013. We will send you
another statement in June or July with details of the second
payment on account.
If the payments on account add up to less than you owe for
2012–13, you must pay the difference by 31 January 2014.
If the payments on account add up to more than the tax bill for
2012–13, we will repay the difference if you have claimed a
repayment in Question 18 on your Trust and Estate Tax Return, or if
not, we will set it against your next tax bill.
SA950
Where you have asked us to work out your tax you will need to
include full details of income which has had tax deducted at
source. If you do not include these details we may calculate that
you are due to make payments on account for 2013–14 when they
are not needed. This can happen if 80% or more of your total
liability is met by tax deducted at source.
You can make a claim to reduce these payments if you expect your
tax bill (net of tax deducted at source and tax credits on dividends)
to be lower in 2013–14 than in 2012–13 – see your Tax Calculation
Guide for more details.
We will charge interest on late payments of payments on account.
For details see 'If you do not pay your tax on time' below.
■
When you settle your tax bill for 2012–13 by 31 January 2014 you
must also pay any first payment on account for 2013–14.
Ways to pay
You can pay by one of the following methods:
• your bank's internet or phone banking facility
• BillPay: debit card over the internet. Go to
billpayment.co.uk/hmrc
• at your bank
• at a Post Office
• by post.
You can find more details of how to pay on the back of the
statement or reminder, or go to hmrc.gov.uk/payinghmrc
Please contact the Accounts Office with questions about making
payment on the following numbers:
• Phone: 0845 366 7816 – about how to pay
• Phone: 0845 366 1204 – for advice, if you cannot pay on time.
■
If you do not pay your tax on time
We will charge interest on all late payments from the date the tax
becomes due until it is paid. You will have to pay a late payment
penalty on any tax for the year ending 5 April 2013, which is due
by 31 January 2014, but is not paid by 1 March 2014. This late
payment penalty will be:
• 5% of the tax paid late, and
• 5% of any tax paid later than 2 August 2014, and
• 5% of any tax paid later than 2 February 2015.
■
Some trustees or personal representatives may have to make
'payments on account'. Each payment will normally equal one half
of the previous year's tax liability (after taking off tax deducted at
source and tax credits on dividends). The payments are due on
31 January in the tax year and 31 July following the tax year.
HMRC 12/12
If you are working out your tax, the Trust and Estate Tax
Calculation Guide explains how to work out your payments
on account.
If you pay too much tax
If you do not claim a repayment, we will take the amount we owe
you, plus any interest, off your next tax bill.
If you do claim a repayment by ticking the 'Yes' box in
Question 18, we will repay it, plus any interest due on the amount
overpaid. Please note, if you have an amount to pay that is due in
the near future then we will generally set off any repayment against
this liability. Also, we would prefer not to make repayments of small
amounts (below £10) because of administrative costs. But if you do
not agree with these set-offs, please contact us.
■
If your Trust and Estate Tax Return is incorrect
If your Trust and Estate Tax Return is incorrect and:
• the trust or estate has paid too much tax see 'If you pay too
much tax' above, or
• the trust or estate has not paid enough tax, we will ask for
more tax. We may charge you interest from the original due
date, penalties and a late payment penalty.
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 29
Late issued return
date, penalties and a late payment penalty.
■
If the notice requiring you to make the Trust and
Estate Tax Return was given after 31 July 2013
We must receive the Trust and Estate Tax Return by the later of:
• 31 October 2013 if you want us to calculate your tax or you file
a paper return or both, or
• 31 January 2014 if you file online, or
• three months after the date of issue of this tax return.
Tax is also due by the later of these dates. We will charge interest
on any tax paid after the due date. A late payment penalty of 5%
will also be made on any tax still unpaid more than 30 days after
the due date.
SA950
The notice requiring you to make your tax return is ‘given’ on the
day it is delivered to you. We will normally assume, for example,
for the purpose of charging automatic penalties for the late
submission of your tax return, that delivery will have taken place
not more than seven days after the date of issue shown on the
front of the notice.
HMRC 12/12
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 30
If you have a complaint
Problems can usually be settled most quickly and easily by the
office you have been dealing with. You will always be given a
contact name or number in any correspondence we send you.
If you cannot settle a matter with the office you have been dealing
with, you can write to:
• the director with overall responsibility for that office or unit, or
• if the problem concerns the service you have been given by an
accounts office, the director of that office.
The director will look into your case and quickly let you know
the outcome. For more information about making complaints,
go to hmrc.gov.uk and under Quick links select Complaints and
appeals.
If you are still not happy
If the director has not been able to settle your complaint to your
satisfaction, you can ask the Adjudicator to look into it and
recommend appropriate action. The Adjudicator is an impartial
referee whose recommendations are independent.
The Adjudicator’s address is:
The Adjudicator’s Office
8th Floor
Euston Tower
286 Euston Road
LONDON
NW1 3US
Phone: 0300 057 1111 or 020 7667 1832
Fax: 0300 057 1212 or 020 7667 1830
adjudicatorsoffice.gov.uk
The Adjudicator’s leaflet AO1 gives information about complaining
to the Adjudicator.
Finally, you can ask your MP to refer your case to the independent
Parliamentary and Health Service Ombudsman. The Ombudsman
will accept referral from any MP, but you should approach your
own MP first.
Further information is available from:
The Parliamentary and Health Service Ombudsman
Millbank Tower
Millbank
LONDON
SW1P 4QP
Phone: 0345 015 4033
Fax: 0300 061 4000
ombudsman.org.uk
Your rights and obligations
Your Charter explains what you can expect from us and what we
expect from you. For more information go to hmrc.gov.uk/charter
How we use your information
HM Revenue & Customs is a Data Controller under the
Data Protection Act 1998. We hold information for the
purposes specified in our notification to the Information
Commissioner, including the assessment and collection
of tax and duties, the payment of benefits and the
prevention and detection of crime, and may use this
information for any of them.
We may check information we receive about you with
what is already in our records. This can include information
provided by you, as well as by others, such as other
government departments or agencies and overseas tax
and customs authorities. We will not give information
to anyone outside HM Revenue & Customs unless the law
permits us to do so. For more information go to
hmrc.gov.uk and look for Data Protection Act within
the Search facility.
SA950
We may get information about you from others, or we
may give information to them. If we do, it will only be
as the law permits to:
• check the accuracy of information
• prevent or detect crime
• protect public funds.
These notes are for guidance only and reflect the position at the time of writing. They do not affect any rights of appeal.
Any subsequent amendments to these notes can be found at hmrc.gov.uk
HMRC 12/12
■ TRUST AND ESTATE TAX RETURN GUIDE: PAGE 31